Star Energy’s three power plants in Wayang Windu, Derajat and Salak in West Java have a total capacity of 875 megawatts. In the near future, Star Energy wants to add two more geothermal assets in Lampung and Halmahera in North Maluku.
In April this year, Star Energy led a consortium with two other Southeast Asian companies to acquire two geothermal power plants worth $2.3 billion from global energy giant Chevron Pacific.
The two consortium partners are AC Energy — a unit of Philippine banking and property giant Ayala Group — and Thailand’s Electricity Generating Public Company (EGCO). Star Energy holds a 68.3 percent stake in the consortium, AC Energy controls 19.8 percent and EGCO 11.9 percent.
The consortium bought up a 370-megawatt power plant on Mount Salak in Bogor, West Java, and the 240-megawatt Darajat power plant in Garut, West Java.
To finance Wayang Windu project, last April, Star Energy Geothermal Ltd. (SEG), has just completed an environmental bond offering or green bond worth $580 million with a coupon rate of 6.75 percent. With a 15-year tenor, the notes will mature on April 24, 2033.
The proceeds of the bond issuance is intended to refinance the debt. In 2013, SEG Wayang Windu issued bonds worth $350 million which will mature in 2020.
Last year, SEG accelerated the repayment of the bonds through refinancing sourced from bank loans. This move is a Star Energy strategy because it requires quick funds to acquire two of Chevron’s geothermal assets.
This year, Star Energy will be more focused on developing the Salak geothermal field that has been acquired from Chevron in 2017. The development of the Wayang Windu geothermal field is scheduled for next year.
In 2019, Star Energy plans to deploy a drilling program at Wayang Windu in order to seek additional geothermal reserves for the expansion of the geothermal power plant.
The Star Energy Group is a SEG shareholder with ownership of 60 perent. The remaining 40 percent is owned by Electricity Generating PCL (EGCO) and Mitsubishi Corporation with 20 percent share ownership.
The Star Energy Group’s shareholder is a Pangestu with a 66.7 percen and the remaining 33.3 percent is owned by BCPG Public Company.
Aside from Star Energy, Barito Pacific‘s crown jewel and its most precious business asset is Chandra Asri, the country’s biggest petrochemical producer. Its unit produces chemicals and plastic raw materials, including butadiene and polythene, used in packaging of electronics, cosmetic products, food and beverages.