PERC, Trans-Asia, and PNOC-RC Sign Joint Venture Agreement for Maibarara Geothermal Power Project

PetroGreen Energy Corporation, a wholly-owned subsidiary of publicly-listed PetroEnergy Resources Corporation (PERC), signed today a joint venture agreement (JVA) with Trans-Asia Oil and Energy Development Corporation and PNOC Renewables Corporation (PNOC RC) for the development and operation of the Maibarara Geothermal Power Project (MGPP).  Maibarara was awarded by the Department of Energy (DOE) to PERC in February 2010 following an open and competitive selection process for awarding of geothermal renewable energy service contract in October 2009.  The parties agreed to form Maibarara Geothermal, Inc. (MGI), capitalized at Phil. Pesos 1.125 Billion with the following shareholding interests: PetroGreen 65%, Trans-Asia Oil 25%, and PNOC RC 10%.

 

With DOE’s approval, PERC’s Maibarara service contract will be transferred and assigned to MGI which will implement the work program earlier approved by the DOE.  This program aims to develop an integrated geothermal steamfield and power plant and commission the first 20 MW unit by late 2013.  During the first two years of the program, environmental permitting, road rehabilitation, work-over of old wells and drilling new ones, flow-tests, detailed engineering design, and initial civil works of the steam field and power plant will be undertaken at a cost of US$12-18 Million.

Consultations with host communities, local government units, UP Los Baños, and other stakeholders in Batangas and Laguna yielded strong support and endorsements for the venture.  PERC completed the project’s environmental study last April and this was submitted to the DENR on May 17, 2010 for the approval of the project’s environmental compliance certificate. Application has also been filed last April with the National Grid Corporation of the Philippines (NGCP) for the grid impact study that will determine the technical requirements of the project’s transmission interconnection with the Luzon grid.  NGCP’s grid impact study is expected to be completed by early 2011. Maibarara is located on the northwestern flank of Mt Makiling, about 70 km south of Manila and is ideally situated with respect to high power demand urban centers and industrial zones of Metropolitan Manila and the Southern Tagalog Region.