EMP restarts direct gas sale from Kangean PSC

JSX-listed oil and gas company PT Energi Mega Persada Tbk. (EMP) Tuesday said that it has restarted direct sales of gas from its Pagerungan field in Kangean PSC, East Java to customers in the Gresik area via the East Java gas pipeline.

Based on the instruction of upstream oil and gas regulator BP Migas, EMP has been supplying gas via the stated-owned gas distributor firm PT Perusahaan Gas Negara (PGN) network to these customers at reduced rates of 40 million standard cubic feet per day (MMSCFD), EMP said in statement.

According to EMP, the commercial arrangements amongst the participants reflecting this BP Migas allocation are still being negotiated.

In addition, on March 4, 2007, EMP had shipped the first crude oil from Sepanjang Field following the field?s initial production on January 27, 2007. The volume of the oil shipment was approximately 66,500 barrels. The crude was purchased by Pertamina at market prices.

Sepanjang oil field currently produces around 3,500 barrels oil per day (BOPD) of the potential capacity of 9,000 BOPD.

EMP through its wholly owned subsidiary EMP Kangean Ltd. owns a 50 percent working interest in the Kangean PSC. The remaining hold by Mitsubishi (25%) and Japex (25%). (denny)