JAKARTA (RambuEnergy.com) – Listed oil and gas company PT Energi Mega Persada Tbk (IDX:ENRG) said it has kicked off the production of the phase two projects in Terang, Sirasun, Batur (TSB) fields within the Kangean Block on March 10, 2019.
The fields, developed by Energi Mega’s subsidiary Kangean Energy Indonesia Ltd, is located about 90 kilometers to the north of Bali Island.
The wells of the fields are located at 90-230 meters depth below sea level. The development of Sirasun and Gatur fields began in 2014 and expected to be fully completed in the first quarter this year.
The fields are developed through Energi Mega’s two subsidiaries Kangean Energy Indonesia LTd and EMP Exploration (Kangean) Limited. The Terang field in the Kangean Block began delivering gas to companies in 2012 in 2012.
“With the completion of the two fields, the Kangean Block is expected to consistently produce 200 million cubic feet per day (MMSCFD),” Energi Mega Persada stated in a statement signed by two directors Amir Balfas and Edorardus Ardianto.
In 2018, Kangean Block contributed 70% of the gas production of Energi Mega Persada, a unit of Bakrie Group. Therefore, the block is expected to continue to play major role in the company’s gas production.
As of end September, Energi Mega has proven reserves of 10.46 million barrels of oil and 1.1 trillion cubic feet of gas.
The Kangean Block is currently the largest discovery of gas made off the mainland East Java Coast, comprising both onshore island and offshore locations within an area in excess of 4,500 km2. EMP holds an effective interest of 50 per cent in the PSC with Mitsubishi and Japex each holding 25 per cent and all three represented on the operating committee. Japex is the nominated operator.
EMP acquired the Kangean block from BP in August 2004. The PSC contract was extended to 2030.
Kangean has provided EMP with a significant gas footprint from which it continues to serve the rapidly growing industrial region of East Java.
Together with its proximity to pipeline infrastructure, access to a large customer base, and large gas reserves, EMP believes Kangean represents a low risk development opportunity. The majority of this PSC’s reserves are proven and represent about two thirds of the company’s 2P reserve base. (*)
Written by Staff Writer
Edited by Roffie Kurniawan (email: email@example.com)