Energi Mega Persada to acquire stake in E. Java gas block

JSX-listed oil and gas firm PT.Energi Mega Persada Tbk. (EMP) announced on Friday it had formed strategic alliance with PT.Indelberg Indonesia Perkasa in its effort to establish itself as one of the dominant gas producer in East Java.

Indelberg has a Joint Operation Agreement (JOA) with PT.Pertamina EP dated April 25, 2007 to operate Suci block in Gresik regency. The potential gas reserves and production are to be tested soon, the company said.

Under the strategic alliance scheme EMP has right to acquire 75 percent ownership of Indelberg upon completion of one either one of the following conditions: (1) the JOA had been in place for at least three years and approval from Pertamina is obtained, or(2) the take over is approved by Pertamina.

EMP expects Suci to start producing gas next year. Earlier reports said that the block could contain up to 400BCF of gas reserves. (alex)