EMP signs new gas sales deal with PLN, Pertagas

Indonesia-listed oil, gas firm PT Energi Mega Persada Tbk, (EMP) announced Wednesday that its subsidiary. Kangean Energy Indonesia Limited (KEI), the operator of Kangean PSC block offshore East Java, has signed gas sales and purchase agreements with PT Perusahaan Listrik Negara (PLN), PT Pertamina Gas (Pertagas) and PT Indogas Kriya Dwiguna

Within the agreements, KEI will sell the 300 million cubic feet of gas per day (MMCFD) to be produced from the Kangean PSC?s Terang Sirasun Batur fields to the buyers with the following terms and conditions:

? PLN: Contracted volume of 368.7 TBTU. Gas price at US$ 5.15 / MMBTU (3% escalation per year). Contract tenor: 31 January 2012 - 30 December 2028

? Pertagas: Contracted volume of 221 TBTU. Gas price of US$ 5.15 / MMBTU (3% escalation per year). Contract tenor: January 2012 + 3,288 days

? Indogas: Contracted volume of 792 TBTU. Gas price of US$ 5.15 / MMBTU (3% escalation per year), Contract tenor: 31 January 2012 ? 7 December 2022

EMP?s CEO and president director Imam Agustino, said ?We see great opportunity for increased gas price in Indonesia. We expect our Company?s realized gas price to improve significantly in 2012 as our 50% owned Kangean PSC block will start production from its TSB Fields at 300 MMCFD gas per day at more than US$5 per MMBTU. This new gas volume sold at attractive price would give positive impact or our Company?s cash flow going forward.? (godang)