EMP starts first gas to PLN from Riau gas fields

JSX-listed oil and gas company PT Energi Mega Persada Tbk (EMP) said Wednesday that had started its gas production on September 28, 2006 from the Baru and the West Baru wells. The wells are part of Korinci Baru PSC.

Gas from the wells would be supplied to the state electricity company Perusahaan Listrik Negara (PLN) in the city of Pekanbaru, Riau Province.

The company said supply volume started from 2 to 6 MMCFD, ramping up to 15 MMCFD.

The company signed deal with PLN in May last year to supply gas of up to 30 BBTUD for a period 15 years. The sources of gas the deal initially comes from the Korinci Baru PSC and then from the Bentu PSC in later years. Total volumes of gas contracted through the deal amounts to 145BCF.

Chris Newton, President Director of EMP, said that the Bentu and Korinci PSCs have some 366 BCE in proven and probable reserves and the uncontracted balance of reserves is strategically located in an energy short market.

EMP acquired the 100% working interest in Korinci Baru PSC and the adjacent Bentu PSC through its acquisition of PT Tunas Harapan Perkasa in January 2006. Both PSC?s are located in the Riau Province. (denny)