Iseteenindus

YTL invests in Eesti Energia's projects in Jordan

14.12.2010
Eesti Energia, Near East Investment (NEI) and YTL Power International Berhad (YTLPI) on 13 December signed an agreement in Amman, by which YTLPI acquired 30% stake in Eesti Energia's Jordanian oil shale projects. The new strategic partner YTLPI will contribute its experience in developing and operating large energy production and trading assets in emerging markets. According to the new shareholding structure Eesti Energia owns 65%, YTLPI 30% and NEI 5% of the oil shale projects in Jordan.

In May 2010, Jordan Oil Shale Energy Company (a subsidiary of Eesti Energia) signed a concession agreement with the Government of Jordan for the surface mining and retorting of oil shale from Attarat um Ghudrun oil shale deposit in Jordan. This is the first surface mining oil shale concession to be awarded by the Jordanian Government. Eesti Energia and its Jordanian partner NEI, together with YTLPI, will develop an oil plant with output of approximately 38,000 bbl per day. Construction will commence following further analysis of the resource and environmental studies. The plant will utilise Eesti Energia's leading proprietary oil recovery technology, which has more than 30 years of industrial production in Estonia.

Pursuant to a memorandum of understanding with the Jordanian Government and NEPCO signed in 2008, Eesti Energia and its partners will also develop a direct burning oil shale fired power plant with a capacity of up to 900MW at Attarat um Ghudrun. The power will be supplied to NEPCO pursuant to a long term power purchase agreement. This will provide Jordan with significant power generation from a domestic source of fuel for the first time. Eesti Energia is the world leader in generation of electricity from oil shale with some 2,000MW of such power generation capacity in Estonia.

Sandor Liive, CEO of Eesti Energia said : "We welcome YTLPI as our partner, and the international experience which they bring in developing and operating large energy production and trading assets in emerging markets; YTL's presence will make a great contribution to the realisation of these projects which will put Jordan for the first time on the way to energy independence".

Dato' Yeoh Seok Hong, Executive Director of YTLPI said "We are delighted to have the opportunity to invest alongside Enefit, with its leading expertise in oil shale fired power generation and technology for oil recovery. This fits well with our strategy of investing in natural resource based energy infrastructure. We are very excited about investing in this beautiful country of Jordan with its ancient history, and its target to develop a reliable, flexible and affordable domestic energy supply".

Eesti Energia, national energy company of Estonia which is internationally known as Enefit. Eesti Energia owns and operates some 2,000MW of power generation capacity (most of which is oil shale fired) and supplies electricity to some 500,000 customers. Eesti Energia is the largest producer of shale oil and has been engaged in oil shale processing for nearly 100 years. The Enefit's proprietary technology has been in operation for more than 30 years, and is the most efficient and environmental friendly shale oil production technology in the world. In 2010, Enefit commenced the construction of a new shale oil plant in Estonia, using a new generation Enefit-280 technology. The first plant will be completed in 2012 and this will form the basis of the technology to be used in Jordan. Enefit reported Total Revenue of USD991 million for the year ended 31 March 2010, Assets of USD 2.5 billion and Net Profit of USD163 million.

YTL Power International Berhad (YTLPI) is one of the largest companies listed on the Malaysian Stock Exchange with market capitalisation of USD5.5 billion as at 10 December 2010. YTLPI owns and operates some 5,500MW of gas, oil and coal-fired power generation plants in Malaysia, Singapore and Indonesia and is an active trader of oil products in the Singapore market where it has approximately 1 million m3 of storage capacity. YTLPI also owns 100% of Wessex Water Services Limited, a water and sewerage services company that serves the south west of England in the UK and a one-third stake in ElectraNet S.A. which owns and operates the electricity transmission network in South Australia.

YTLPI is the utility subsidiary of YTL Corporation Berhad (YTL Corp), one of the largest groups in Malaysia with interests in construction, power, cement manufacturing, water and sewerage services, property development, hotel development and management, information technology and e-commerce initiatives, wireless communications and rail services. YTLPI reported Total Revenue of USD4.3 billion for the year ended 30 June 2010, Assets of USD10.8 billion and Net Profit of USD 385 million.

Marina Bachmann
Press Officer
Eesti Energia AS
Tel: 71 51 218
GSM: 56 456 600
marina.bachmann@energia.ee