MANILA, Philippines (CORRECTED) - Lopez-led Energy Development Corp. (EDC) on Monday said it is dropping two geothermal projects in Chile, but will still pursue projects in Peru.
In a disclosure to the stock exchange, EDC said it had decided to not pursue two geothermal projects in Chile, which are covered by its joint venture with Australia's Hot Rock Limited (HRL).
"EDC deployed a full team of geothermal scientists to conduct the initial geo-scientific surveys of Calerias and Longavi projects... As a result of these initial geo-scientific surveys, EDC made the decision not to pursue these projects," the company said.
Earlier this year, EDC signed a joint venture agreement with HRL for the development of the Calerias and Longavi projects in Chile and Quellaapacheta and Chocopata in Peru.
However, EDC is still pursuing the 2 geothermal projects in Peru.
"EDC and HRL commenced the incorporation process of the Chocopata and Quellaapacheta Project Companies, where EDC will own a 70% equity stake," the company said.
Completion of the transaction is subject to certain conditions, including due diligence and regulatory approvals, it added.
HRL has already acquired 23 geothermal tenements across Chile, Peru and Australia. The company has been among the first to identify and obtain some of the most attractive concession areas in Latin America, according to EDC.EDC earlier said it is looking to expand its partnership with HRL to include the latter's other sites.
ABS-CBNnews.com is the news website of ABS-CBN Corp., which is part of the Lopez Group of Companies.