Origin sells interest in Indonesian geothermal project

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Image credit: www.originenergy.com.au

Leading Australian integrated energy company Origin Energy has reached an agreement with KS Orka Renewables for the sale of its 50% interest in OTP Geothermal Ote Ltd (OTP).

Image credit: www.originenergy.com.au
Image credit: www.originenergy.com.au

OTP is a 50:50 joint venture with Tata Power International and holds a 95% interest in Indonesia’s PT Sorik Marapi Geothermal Power (SMGP), which is currently progressing the development of the 240MW Sorik Marapi Geothermal Power Project in North Sumatra.

Origin said the divestment was consistent with its strategy to reduce debt and focus on its two core businesses, Energy Markets  and Integrated Gas.

The transaction – valued at US$30 million – is subject to customary conditions including approvals from relevant Indonesian government authorities.