EMP kicks off E. Java gas fields development campaign

JSX-listed oil and gas frim PT.Energi Mega Persada on Tuesday kicked off development campaign for its Terang, Sirasun and Batur gas fields in Kangean PSC offshore East Java.

The company said the project, which will be able to flow 300MMCFD of gas to the industrial province of East Java early 2008, would cost US$275 million. Another $125 million to develop second phase to maintain the gas fields flow rate from 2009 on.

EMP said it would drill 5 production wells along with subsea pipeline and floating production unit. The company said it would divide development works in 5 tender packages, which are expected to be opened shortly.

Gas from the fields would be piped to onshore East Java to state electricity firm PLN, state gas distribution firm PGN, and state fertilizer firm Petrokimia Gresik.

EMP has 100 percent interest in Kangean PSC. Kangean?s Pagerungan gas field is currently producing at 84MMCFD at declining rate. (alex/godang)