Energi Mega Persada secures $203m syndicated loan facility

IDX-listed PT Energi Mega Persada Tbk. (EMP) on Wednesday secured a new US$203 million syndicated loan facility arranged by Bank of America Merrill Lynch, Bank of India, and Intesa Sanpaolo SpA. The loan facility has a 5 years tenor and current interest rate of Libor + 6 percent per annum.

The new loan facility will be used to settle most of the outstanding loan facility. Consequently, with the repayment of the outstanding loan, EMP can reduce interest cost significantly.

?With the settlement of the outstanding loan, we can save cost of interest up to US$26 million next year. This saving will have positive impact on the financial performance of EMP in the future,? said President Director EMP Imam Agustino in a statement filed with the Indonesian Stock Exchange.

Imam added, as the largest listed upstream oil and gas company by production in Indonesia, EMP is going to continue to maximize every opportunity to increase the company?s value. Beside these efficiency steps, EMP is going to increase oil and gas production from such blocks as Kangean PSC, Bentu PSC, and ONWJ PSC.

The efforts have been successful so far. As a proof, during the period of January to September 2013, the average oil and gas production of the company reaches 49 thousand barrels equivalent per day, with the peak production level of 54,000 barrel equivalent per day. Until September 2013, EMP has certified proved and probable oil and gas reserves of more than 200 million barrels equivalent.

"We will continue to maintain this positive momentum to keep ENRG business in a sustainable growth. Through the good performance we hope that we can give an optimum added value to stakeholders and shareholders of the company, ?said Imam.

Editing by Johannes Simbolon