EMP starts commercial oil production from Kangean PSC

JSX-listed oil and gas company PT Energi Mega Persada Tbk (EMP) said Tuesday that its subsidiary, EMP Kangean Ltd., had started commercial oil production and commissioned production facilities from the SED-1A well on Sepanjang Island oil field in the Kangean PSC.

Currently, the well is producing clean 32.2 API gravity oil at an initial rate of 3,500 BOPD from the capacity to produce up to 9,000 BOPD, the company said in statement.

SED-1A is being drilled by employing Under Balanced Drilling (UBD) technology to maximize the productive potential of the Ngimbang Carbonate Reservoir.

Oil will be stored in the Mutiara tanker floating storage and offtake (FSO) facilities with a capacity of 200,000 barrels, which is located in offshore Sepanjang Island, the company added.

According to the company, upstream oil and gas regulatory body BP Migas has approved provisional Indonesian Crude Price (ICP) for Sepanjang crude at ICP Widuri plus US$0.25 per barrel.

EMP owns 100 percent working interest in the Kangean PSC. (denny)