PT Energi Mega Persada Tbk. (EMP) reported that its 60.49% owned and operated Malacca Strait PSC block, just started its first commercial gas volume of 8.5 million cubic feet per day to the BOB PT Bumi Siak Pusako – PT Pertamina Hulu Energi (“BOB”).
The gas output is produced from the block’s Kuat gas field and is sold at $8.00/mmbtu with an escalation term of 3% per annum from July 2014 to August 2020. BOB uses the gas output as fuel for its power generator to lift oil.
In the first quarter of 2014, the Malacca Strait PSC produced around 3,288 barrels oil per day (based on EMP’s 60.49% stake). Imam Agustino, EMP’s CEO, said: “The additional gas output is expected to have positive impact on the Company’s financial results in the second half of 2014.”
EMP is an upstream oil and gas company, operating some 12 oil & gas assets in Indonesia and Mozambique (Africa). In the first quarter 2014, the Company produced around 12,700 barrels oil per day and 231 million cubic feet gas per day, equivalent to 51,290 boepd. EMP also operates proved and probable reserves of 21 million barrels oil and 1.1 trillion cubic feet gas as per 31 March 2014.