EMP sees E. Java fields production delay

JSX-listed oil and gas firm PT Energi Mega Persada (EMP) said Thursday that the shortage of rigs will delay production from its Terang Sirasun Batur development fields of the Kangean PSC in East Java until the end quarter of 2008.

The fields may produce 300 MMCFD of natural gas starting in the fourth quarter of 2008, Energi Mega Director Faiz Shahab told reporters in Jakarta.

"High oil prices stretched the industry's availability of rigs and production equipment and caused many projects to be stalled," Faiz said.

A source at EMP?s website said that Terang Sirasun Batur development fields will start first gas production by the end of 2007.

EMP is developing the Kangean block in two phases, which is aimed to bring two other gas production fields. The first phase is for Terang field, while the second is for Sirasun, Batur fields. The Pagerungan field is currently producing up to 45 million cubic feet per day (MMCFD), the company said on Dec 4, 2006.

Meanwhile, EMP's head of investor relations Herwin Hidayat said at the briefing that company plans to boost oil equivalent output by 30 percent this year.

The company produced 11,000 barrels a day of oil and 100 million cubic feet of gas per day last year, he said.

EMP is the operator of the PSC with 100 percent interest. (godang)