Nissho Iwai, Kyushu Electric and SembCorp Utilities to join BP in Phu My 3 BOT Power Project in Vietnam
Oct. 10, 2001
TOKYO (Oct.10 2001)-- BP Holdings B.V., SembCorp Utilities Pte Ltd, and a consortium of Kyushu Electric Power Co., Inc and Nissho Iwai Corporation announce that they have entered into an agreement which will result in each holding a one-third ownership of the Vietnam company Phu My 3 BOT Power Company Ltd ("Phu My 3"). BP currently owns 100% of Phu My 3
Phu My 3 has already started constructing what will be Vietnam's first power plant to be developed under the "Build Operate Transfer" form of investment under Vietnam's Law on Foreign Investment. The plant is a 716.8 MW net electric output combined cycle plant using two Siemens V94.3A technology gas turbines and a steam turbine. The plant is located 70 km from Ho Chi Minh City near the Vung Tau area and will utilise gas from the BP operated Lan Tay/Lan Do gas fields 370 km offshore Vietnam.
Phu My 3 currently holds gas supply and power purchase agreements that were executed with PetroVietnam and Electricity of Vietnam. These agreements are for a 20-year period, commencing from the commercial operation date of the plant. The project cost is expected to be less than US$400 million of which 30% is expected to be equity and the balance as project financed loans. The commercial operation date is expected to be before the end of 2003.
The transaction is scheduled to close in the fourth quarter 2001 and is subject to a number of terms and conditions including the approval of Vietnam's Ministry of Industry and issuance of an amended investment licence by Vietnam's Ministry of Planning and Investment recording the change from BP's 100% ownership of Phu My 3. Terms of the agreement were not disclosed.
About the Partners
BP Holdings B.V. is a wholly owned subsidiary of BP plc. BP plc is an international energy company involved in the exploration of crude oil and natural gas; refining, marketing, supply and transportation of hydrocarbons; manufacturing and marketing of petrochemicals; solar power systems; and gas-fired power generation. BP has well-established operations in Europe, North and South America, Australia, Asia and Africa. For more information, please visit http://www.bp.com. In Vietnam, BP operates the Lan Tay/Lan Do gas fields and the Nam Con Son gas pipeline and terminal upstream of Phu My 3.
SembCorp Utilities is a wholly owned subsidiary and the power & integrated utilities arm of SembCorp Industries which is ultimately about 58 per cent owned by Temasek Holdings, an investment arm of Singapore Government. SembCorp Utilities aims to be the leading Power and Integrated Utilities Group in Asia Pacific by 2005. For more information, please visit http://www.sembutilities.com.
Kyushu Electric Power Co., Inc is one of the major electric power companies supplying electricity to the entire Kyushu area, which is located in the southwestern part of Japan with the generation capacity of approximately 20 GW. Kyushu Electric is interested in expanding its investment in overseas projects particularly in Asia. This is its first investment in Vietnam but already has a training co-operation agreement with Electricity of Vietnam.