Energi Mega plans lower capex next year

Petromindo

IDX-listed oil and gas firm PT Energi Mega Persada Tbk (EMP) plans lower capital expenditure (capex) next year as the company will be more focused in developing existing assets instead of expansion, Kontan reported on Thursday.

The paper quoted EMP President Director Imam Agustino as saying that capex next year will be set at U$114 million, or 10 percent lower than this year?s.

He said that EMP will focus on increasing production from a number of fields to counter declining output at maturing fields.

EMP sets oil production target of 40,000 bpd for next year, lower than the 42,300 bpd in the first nine months of this year. ?There will be lower production including from Malacca block,? Imam said.

The paper said that EMP will produce more gas instead. EMP Investor Relations Head Herwin Hidayat said: ?Revenue from gas will probably be higher than revenue from oil.? In the first nine months of this year, gas revenue accounted for $296 million of the total $391 million revenue.

EMP next year plans to refinance debts worth between $60 million to $100 million, the paper said. (*)