Sepanjang oil field resumes operation

Indonesian listed oil, gas firm PT Energi Mega Persada Tbk. (EMP) said on Monday that it has resumed its Sepanjang oil filed in Kangean PSC, offshore East Java with production rate between 1,800 and 2,000 barrel per day.

A new Floating Storage Offloading (FSO) operated by PT Tirtajaya Segara has been in place. The FSO has the capacity to store oil up to 350,000 barrels, the company said in a statement.

EMP president director Imam Agustino stated, ?The oil production recommencement from the Sepanjang field is one of the several milestones that has been accomplished by our company. In addition to this Sepanjang oil flow, we expect to initiate the first gas production from Bentu PSC?s Segat and Seng fields (Riau, Sumatera) and the first oil production from Kangean PSC?s North Pagerungan field (East Java) by end of this year.?

As per first half 2010, Kangean PSC produced 28 million cubic feet gas per day and 1,400 barrels of oil per day based on its 1.35 trillion cubic feet gas and 9.8 million barrels of 2P reserves.

The operator of the block is PT Kangean Energy Indonesia Limited (KEI). EMP through its subsidiaries holds 50% working interests in the block. (denny)