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ENRG losses Rp 1.73 trillion in 2009 on lower oil prices
Indonesian listed oil and gas company PT Energi Mega Persada (ENRG) booked Rp 1
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ndonesian listed oil and gas company PT Energi Mega Persada (ENRG) booked Rp 1.73 trillion (US$190 million) net losses in 2009 due to “lower prices and higher financing charges”, the firm announced in an emailed statement published on Tuesday evening.
In 2008, Energi booked net losses of Rp 35 billion.
“2009 represented a difficult year for the company and was characterized by a slowly improving operating environment from the collapse in oil prices at the start of the year,” Energi’s CEO Imam Agustino said in a statement.
Agustino added that Energi also experienced an average drop in oil prices of 38 percent year on year.
The company recorded a 102 percent increase in financing costs during the year, up to Rp 1.28 trillion.
Agustino said that the firm would focus on efficiency in capital allocation. It spent $53 million on capital expenditure in 2009, down from $198 million spent in 2008.
ENRG also reported it produced 17,813 barrels of oil equivalent per day in 2009, a 5 percent increase on 2008. “We are targeting to grow a further 15 percent in 2010 driven by low risk new gas developments in Sumatra and East Kalimantan,” Agustino said in an earlier statement. The company expects to deliver a 25 percent average growth rate in production over the next five years from existing reserves.
EMP operates 9 oil and gas assets in Indonesia and two coal bed methane (CBM) blocks in Kalimantan. Their biggest source of oil comes from a block in the Malacca Straits, while blocks in Kangean supply the greatest amount of gas.
EMP acquired 10 percent working interest in the Masela PSC block in Maluku from Japan’s exploration company INPEX in November last year. The 10 percent stake is valued at around $100 million.
The Masela block, located in the Arafura Sea, is estimated to hold more than 10 trillion cubic feet of gas reserves. Inpex proposed to construct a floating LNG plant with capacity between 4.5 to 9 million metric tons LNG per year. Upstream oil and gas regulator BPMigas chairman R. Priyono said an independent consultant was still reviewing the commercial options for the project.
