Milbank LLP advised PT Supreme Energy, one of Indonesia’s leading renewable energy developers, in connection with its partial divestment of equity interests in PT Supreme Energy Sumatera, a shareholder in the Muara Laboh Geothermal Power Project in Indonesia, to INPEX Geothermal, Ltd. This transaction follows a very successful development program for the project and is another example of sponsors and developers seeking out opportunities to invest in high quality renewable assets in the region as the clean energy transition takes hold.
Located in the West Sumatra province of Indonesia, the Muara Laboh Geothermal Power Project has an 85-megawatt output and produces the equivalent of the electricity consumption of 420,000 households in Sumatra. The project is a joint venture between PT Supreme Energy Sumatera, which holds 30% of project shares, and Sumitomo Corporation and European integrated energy company Engie S.A, which each hold 35% of project shares. Commercial operations commenced in December 2019 and the plant’s electricity is marketed to PT PLN (Persero) (“PLN”), Indonesia’s state-owned electric utility, under a 30-year Power Purchase Agreement.
The Milbank team advising PT Supreme Energy was led by Singapore Global Project, Energy and Infrastructure Finance Group partner James Orme with associate Martin Wong.
Milbank also advised PT Supreme Energy Muara Laboh in the project financing of the Muara Laboh Geothermal Power Project, which achieved financial close in 2017. Global Project, Energy and Infrastructure Finance Group partner James Murray and special counsel Andrew Gibb led a separate team advising the project company on the consents required from the project lenders for the INPEX investment.
