Energi Mega increases gas production from Bentu PSC

IDX-listed PT Energi Mega Persada Tbk announced on Thursday that its 100 percent owned subsidiary, EMP Bentu Limited, the operator of the Bentu PSC block in Riau, Sumatera, has signed the agreement to produce and sell around 3 million cubic feet gas per day (mmcfd) to Perusahaan Daerah Tuah Sekata in Pelalawan, Riau at US$ 4.7/mmbtu.

The contracted volume is 8.1 billion cubic feet (bcf) of gas, and the agreement is good for eight years, until May 2021. The agreement also includes the price increase term of 3 percent every two years.

Upstream authority SKK Migas has approved the sale of gas from the Bentu PSC block to the Perusahaan Daerah Tuah Sekata (a regional state owned company in Pelalawan Riau). This shows strong commitment by the SKK Migas and EMP Bentu Limited (the operator of Bentu PSC block) to the community development in the Pelalawan area, the company said in a statement.

Throughout 2012, Bentu PSC produced gas at the volume rate of 16 mmcfd. The volume has already gone up to 28 mmcfd during the first half 2013, and is expected to further increase toward the end of the year. The gas is sold mostly to Riau Andalan Pulp & Paper and PLN Pekanbaru at over US$ 5/mmbtu.

CEO Imam Agustino said, ?Bentu PSC is one of the key drivers for the Company?s production growth in 2013. Our 11 oil and gas assets, including Bentu PSC, are set to achieve over 50,000 barrels equivalent per day throughout year 2013. This is a 32 percent growth from last year?s production.?

The company operates 11 oil, gas, and coal bed methane assets in various parts of Indonesia. It has certified proved and probable reserves of 208 million barrel equivalent, and has production rate of 48,500 barrels equivalent per day in the first quarter of 2013.

Editing by Johannes Simbolon