Release: EMP: Increased gas prices from EMP?s assets
Friday, August 28 2009 - 08:33 AM WIB
? To supply gas at US$ 2.65 / mmbtu up to 15 million cubic feet per day until 30 June 2010.
? Any gas supply amounting to between 15 to 30 million cubic feet per day will be priced at US$ 4.625 / mmbtu from 1 January 2009 to 30 June 2010.
? Starting from July 1, 2010 the gas supply will be priced at US$5 / mmbtu with 3% p.a. escalation term (subject to Kalila?s ability to produce gas to PLN with minimum volume of 30 million cubic feet per day).
EMP?s President Director, Imam Agustino, said, ?This is a positive result from our Bentu PSC and Korinci Baru PSC assets. Currently both assets produce around 19 million cubic feet of gas per day to PLN and PT Riau Andalan Pulp & Paper (RAPP). Around 13 million cubic feet gas per day goes to PLN, while the remaining 6 million cubic feet gas per day is allocated to RAPP.?
Agustino added, ?We are optimistic to commence the gas production from Seng and Segat Gas Fields by end of year 2010, and this is expected to increase the total gas production from Bentu PSC and Korinci Baru PSC to become roughly 35 million cubic feet per day. The increased gas price and the higher gas volume would definitely improve EMP?s cash flow going forward.?
In addition, EMP?s Semberah TAC extended its Gas Sales & Purchase Agreement with VICO for another 5 months, until 31 December 2009. The gas price is also amended based on the following formula: (5% x ICP) + 1. This formula is effective as per 23 July 2009, and is expected to have positive impact on Semberah TAC?s performance in the event that the world oil price increases.
EMP through its subsidiaries controls 100% stakes in Korinci Baru PSC. Bentu PSC, and Semberah TAC. These positive gas price and production results are expected to add value to EMP?s overall performance. (end of release)