EMP in talks with PLN, Petrokimia Gresik to up gas prices

JSX-listed oil, gas firm PT.Energi Mega Persada (EMP) planned to renegotiate gas prices with buyers in order to secure higher selling price.

VP-Capital Markets Herwin Hidayat told Petromindo.Com on Wednesday that under gas contracts with its customers, there is room that allow price renegotiation. ?Currently we are focusing to renegotiate gas price with two major customers; PLN and fertilizer maker Petrokimia Gresik,? he said. Both companies are offtaker for the company?s gas field in Kangean PSC, offshore East Java.

Herwin said EMP is looking to increase gas price from US$2.7-2.8 per MMBTU to at around $3-3.5 per MMBTU.

Thus far, he said, both PLN and Petrokima Gresik has responded positively to the planned price increase, he said, without further elaborating.

Herwin also said that the company is close to sign deal to sell gas from Semberah TAC in East Kalimantan and Korinci PSC in Jambi with undisclosed buyers. Each block is expected to produce 15-30 MMCFD of gas. He said the new contracts would price the gas at minimum of $3.5 per MMBTU. Gas from both blocks, are expected to flow by year-end, he said. (denny)