EMP to drill 34 wells in Malacca Straits PSC
Saturday, April 10 2004 - 01:41 AM WIB
The company said in its prospectus released on Thursday that the drilling campaign is aimed at improving its oil production to 12,000 barrels per day (BPD) in 2005 from the current 10,000 BPD.
EMP said last year?s geology and geophysics study indicated a potential oil reserve in the northern and eastern parts of the block.
EMP holds a 60.49 percent working interest in the PSC. The PSC was signed in 1970 for a period of 30 years and has been extended to 2020. EMP operates the block through its subsidiary Kondur Petroleum SA.
EMP is struggling to maintain production rate amid natural decline in the reserves of the existing production fields.
According to a report, oil production from the block reached around 60,000 BPD in 1991, compared to the average rate of 20,000 BPD in 1995 when Kondur took over from Lasmo Oil.
The block?s main producing oil fields are Lalang and Mengkapan (offshore), Kurau and Melibur (onshore), and Selatan, a plethora of small onshore and offshore oil accumulations.
According to the prospectus, as of January 2004, the PSC?s proven reserve stood at 26.5 million barrels of oil.
In a bid to finance its upstream activities, EMP plans to sell approximately 30 percent shares at between Rp 110 (1.2 U.S. cents) and Rp 170 with the nitial public offering (IPO) scheduled for May this year.
The company said that about 40 percent of the proceeds will be used to develop the Malacca Straits block including bringing the BY gas field into commercial production in 2005.
Aside from the block, the company through its subsidiary PT Lapindo Brantas also holds a 50 percent working interest and operatorship in the Brantas PSC in East Java. (Robert)