Energi Mega Persada raises gas output for PLN
Friday, December 28 2012 - 04:45 AM WIB
Under a signed agreement, Bentu PSC will sell contracted gas volume of 129 billion cubic feet at US$ 5.3 per mmbtu to PLN. The Contract is effective from year 2012 to 2021, with a three percent price increase per year.
Bentu PSC has increased its gas output from 16 million to 24 million cubic feet per day. The gas output is allocated to PLN at 20 million cubic feet per day (mmscfd)) and to PT Riau Andalan Pulp & Paper at 4 mmscfd. The gas volume sold to PT Riau Andalan Pulp & Paper (RAPP) is priced at US$ 4.1 per mmbtu.
?Currently the total gas volume of 24 million cubic feet per day is produced from Bentu PSC?s 3 wells, Segat 2, 3, and 4 wells, and distributed through a 52 km long pipeline to PLN and RAPP,? ENRG CEO Imam Agustino said.
?In the first semester of 2013, we plan to further increase Bentu PSC?s gas output from 24 to 32 million cubic feet per day. The additional gas output will come from the Seng 1 well,? he added.
According to him, the increased gas output from Bentu PSC at an attractive price will have positive impact on ENRG?s cash flow going forward. ENRG is expected to reach an average production rate of over 50,000 barrels equivalent per day of oil and gas throughout the year 2013.
Bentu PSC is 100 percent operated by ENRG and is located in Riau, Sumatera. The block has certified proven and probable reserves of 371 billion cubic feet of gas.
Editing by Benget Besalicto Tnb.