EMP ups 2009 capex

EMP ups 2009 capex

IDX-listed oil, gas firm PT.Energi Mega Persada will spend US$300 million of capital expenditure this year on its oil, gas block portfolio including Kangean block offshore East Java, up from $130 million it spent last year.

Newly elected President Director Imam Agustino told reporters that the company sourced part of the $300 million in form of loan from Mitsubishi Corp and Japex, its partner in Kangean block and from internal sources.

Imam said that the expenditure will be directed toward production increase of 20 percent this year. The company produced 25,000 BOEPD of oil and gas from its blocks last year.

He added that the company will renegotiate to improve gas sales price with customers and is also in the process to negotiating gas price from its Gelam Block in Jambi with offtaker PT.Energi CNG. EMP?s average gas sales price in 2008 was US$2.8 per MCF.

Emp?S crwon jewel asset is 50 percent stake at Kangean block, which is one of the major gas and oil producer in Java. (bernard)