EDC eyes geothermal concessions in Chile

MANILA, Philippines - Lopez owned Energy Development Corp. (EDC), the country’s leading geothermal power developer, will bid for several concession areas in Chile.

In a statement, EDC said it will course its bids through its subsidiary, EDC Chile Ltd. which was incorporated on Feb. 11, 2010 in Santiago, Chile.

Based on the bidding rule, EDC has to show its financial support to EDC Chile to be able to participate in the Chilean geothermal auction.

EDC has issued a letter of credit amounting to $80 million as evidence of its financial support to its subsidiary.

EDC had been earlier invited to bid for a geothermal drilling contract in Kenya but company president and COO Richard Tantoco said they have yet to decide whether to accept the invitation or not.

“There’s nothing definite yet on this. But we have been invited to a bidding in Kenya,” Tantoco said.

The company official said one of their main business focuses will be the expansion of its international exposure. Earlier, EDC said it will establish presence in Indonesia, South Asia and in the Middle East.

EDC had set up a representative branch in Indonesia as part of an initial move to explore geothermal development business in that country.

At present, EDC has drilling operations for Lihir Gold Ltd., (LGL) in Papua New Guinea.

LGL, one of the leading gold producers in the Asia Pacific region, sources most of its power requirements for its gold mine and processing facility from geothermal energy.

EDC’s contracts with LGL have been its major source of drilling revenues since 1999.