EMP to spend $58 million on marginal oil fields development

Publicly listed oil and gas firm PT Energi Mega Persada (EMP) said Thursday it would spend around US$58 million on development of two marginal oil fields in the Kangean block, East Java.

“We will start to develop Sepanjang Island and JS53A oil fields soon,” EMP president Rennier Latief said in company’s public expose.

The government has recently awarded new incentives to EMP, together with other seven contractors, to recover larger costs spent for the development of marginal oil fields as part of the efforts to boost the development of such fields.

The two Kangean oil fields had an estimated reserve of about 19.0 million barrels of oil. Production from the fields is targeted to reach 10,000 barrels of oil per day.

According to EMP’s annual presentation material, oil from Sepanjang Island field is expected to come onstream this year, while JS53A oil field will follow a year after. (godang)