Sintong Offloading Facility at Tonga block on hold

By Febry Silaban

The Sintong Offloading Facility project of the Tonga block, Padang Lawas regency, North Sumatra which is operated by IDX-listed PT Energi Mega Persada Tbk. (EMP), has been put on hold due to the decline in oil prices.

?Currently the economics of the project is being discussed due to the decline in oil prices,? said Chairman of upstream authority SKK Migas Amien Sunaryadi in Jakarta.

The development progress of the Receiving Tank Facility at the block has reached 71 percent (versus 88.09 percent plan), according to Amien.

Last month, President Director of EMP Imam Agustino said, his firm has suspended production at Southeast Tonga-1 well due to the low oil price and high costs. ?We are looking for other alternative way of production,? he said.

The Tonga block is 94.29 percent owned and operated by PT EMP Tonga, 5 percent by PT Petross EP, and 0.71 percent by Rahina Dewayani.

Editing by Johannes Simbolon