EMP starts gas production at E. Kalimantan TAC
Tuesday, May 22 2007 - 11:40 AM WIB
JSX-listed oil and gas company PT Energi Mega Persada Tbk (EMP) said Tuesday that its wholly owned subsidiary PT Semberani Persada Oil had started gas production at the SBT-01 well of Semberah TAC in East Kalimantan.
The gas is channeled to the power plant owned by state electricity firm PT Perusahaan Listrik Negara (PLN) in Samarinda, East Kalimantan.
The gas is currently sold at over US$2.72/MMBTU. But, under contract, the price will increase annually, the company said in statement, adding the first production started on May 1, 2007.
The firm signed a gas sales and purchase contract with PLN on Sept. 30, 2005, under which PLN will get total gas supplies of 62 BCF from the former through 2015.
Currently, gas flow from the SBT-01 well averages 5.2 MMSCFD. In addition, the block also flows 710 barels of oil per day (bopd) from four wells (SBR-05, SBR-06, UKM-04 and SBR-08).
Semberah’s other gas well, SBT-2A has also been ready to flow gas at an average of 5 MMCFD while waiting for PLN to finish repairing its gas turbine.
The company is expected to channel gas from both wells at a rate of approximately 10 MMCFD in the beginning of the second half of the year.
EMP acquired a 99.99% working interest in Semberah through its acquisition of PT Tunas Harapan Perkasa in January 2006. (denny)