Energi Mega?s production down sharply
Thursday, December 21 2017 - 01:12 AM WIB
Petromindo|Lucky
IDX-listed upstream company PT Energi Mega Persada Tbk (EMP) said its oil and gas production this year has dropped sharply after it lost a key asset, the Offshore North West Java (ONWJ) block in West Java Province, following the expiry of its contract late last year.
?Our current production is 27,000 boepd, while last year it was 42,100 boepd. The production drastically declined because (the company?s contract over the) ONWJ block has not been extended,? said EMP Head of Investor Relations Herwin Hidayat on Wednesday.
He said that the production currently comes from two main assets, the Bentu and Kangean blocks.
The government on January 18 of this year signed a new production sharing contract for the ONWJ block following the expiry of the previous contract, transferring the entire block to PT Pertamina Hulu Energi (PHE) ONWJ, an indirect subsidiary of state-owned oil and gas firm PT Pertamina. The government has said that PHE ONWJ is allowed to have partner in developing the block.
Under the previous contract, PHE ONWJ as the operator owned a 58.27 percent interest in the ONWJ block in West Java, while Kuwait Foreign Petroleum Exploration Company (Kufpec) owned 5 percent interest, and PT Energi Mega Persada (EMP) had more than 36 percent.
EMP has earlier expressed interest to have a participating interest in the new ONWJ block contract.
Editing by Reiner Simanjuntak