EMP acquires 10% stake in INPEX's Masela PSC

IDX-listed oil, gas firm PT Energi Mega Persada Tbk. (EMP) announced Wednesday that its, subsidiary PT EMP Energi Indonesia has signed an agreement with INPEX Masela, Ltd., an affiliate of Japanese firm INPEX Corp. to acquire a 10% participating interest in the Masela PSC in Arafura Sea.

The transaction is subject to the Indonesian government's approval and the satisfaction of certain other conditions, EMP said in statement, without providing the transaction figures.

INPEX Masela is currently the operator with a 100% participating interest in the block which measures 3,221 km2 in a water depth ranging from 300 meters to 1,000 meters.

The firm found the Abadi gas field in the block in 2000. The subsequent appraisal wells and study results confirmed the field has sufficient gas reserves for LNG production, EMP said.

According to EMP, based on the plan of development (POD) approved by the government, 4.5 million tons per annum of LNG and 13,000 barrels of condensate per day will be produced at the field using the Floating Liquefied Natural Gas (FLNG) technology with production expected to start in 2016.

Applying the FLNG technology to the project makes it possible to place natural gas liquefaction system with LNG storage and loading facilities on a single vessel, which will minimize the environmental footprint compared to conventional onshore gas liquefaction plants. the firm said.

INPEX Masela is preparing a Front End Engineering and Design (FEED)for the project, EMP added.

Masela has an estimated reserves of 10TCF. With an investment of US$14.5 billion, the plant is expected to become onstream in 2016-17. (denny)