Lopez-led Energy Development Corporation (EDC) has formally pulled out its concession for geothermal resource exploration in Peru, citing turbulent political situation in that Latin American energy market as the main reason for such investment decision.

The company - via its parent firm First Gen Corporation - had apprised the Philippine Stock Exchange (PSE), that its board of directors and the stockholders of its subsidiary EDC Peru S.A.C. “have decided to no longer pursue exploration and development activities in Peru due to political and market factors.”

EDC’s plan to expand offshore investment opportunities had been contemplated more than a decade ago, but several factors, have so far been impeding its full entry into these markets.

Way back in 2013, the company went up to the extent of allocating specific capital expenditures (capex) for its geothermal exploration activities in various energy markets in Latin America, including Chile, Peru and Nicaragua.

For Peru, the company had cemented a tie-up with Magma Energia Geotermica S.A., which is also a subsidiary of Canadian firm Alterra Power, which could have been the corporate vehicle for planned exploration at the Mariposa prospect in that offshore market.

That followed an earlier attempt to pursue exploration and development at the Chocopata project, although that was abandoned by EDC in 2012 due to non-commercial viability in the targeted development site.

The other geothermal exploration venture pursued by the Lopez-controlled firm in Peru has been the Quellaapacheta prospect.

In Chile, EDC had previously targeted geothermal exploration venture via wholly-owned subsidiary Magma Energy Chile Limitada, which also in
partnership with Canadian firm Alterra Power. That makes it third targeted business activity in Chile, the initial two being the Calerias and Longavi prospects.

Back then, the investment plans cast by the company ranged from expansion of existing assets, development of new fields and exploration of frontier geothermal areas.

Recently though, the executives of the company sounded off that concentration of investments will be focused for now in the domestic energy market, primarily to support the energy transition agenda being advanced by the Philippine government.