Andalas, headed up by former Nido Petroleum boss Dave Whitby, said its deal with Persero would help build on the group's existing relationship with state-owned oiler Pertamina.

 

Andalas, which is listed on London's AIM, said Persero was worth $1.4 billion, and it had a strong relationship with Indonesia's national power company PLN it has built 14 power projects 2168MW since 2012.

 

The agreement anticipates that Andalas propose at least three gas-to-power projects to Persero within the first three months.

 

"Our relationship with Pertamina is creating a new gas to power business in Indonesia," Whitby said. 

 

"The agreement is complementary to this business but importantly enables Andalas to pursue other gas to power projects that it has identified with non-Pertamina gas fields. 

 

"Persero is a motivated and strategic partner that we believe brings unique skills, relationships and financial resources to a project consortium that we expect will further enable Andalas to deliver its target of 250-500MW."

 

He said the company should be in a position to announce the first independent power projects in the short term.

 

The company has previously defined a handful of Pertamina gas fields as being suitable to support its plans, although the deal with Persero also covers third party gas supplies.