PT Energi Mega Persada Tbk. ( ENRG ) has acquired the oil and gas Exploration and Production Concession Contract ( EPCC ) for the Buzi Block in Mozambique, Africa.
ENRG will own 75 percent participating interest in the Buzi Block, partnering with the Mozambique government, which owns 25 percent through Empressa Nacional de Hidrocarbonetos ( ENH ).
The block, acquired for US$175, is projected to start producing in 2017.
ENRG is funding the acquisition by internal cash flow and loan financing. The Buzi Block has caught the attention of many international oil and gas companies, especially after a 283-billion-cubic-foot gas reserve was recently discovered. The block has an additional 13.4 trillion cubic feet of prospective gas resources.
'Mozambique has emerged as a new giant in natural gas. More than 100 tcf [trillion cubic feet] were recently discovered, and Mozambique is the next emerging region for oil and particularly gas and could become the world's third largest exporter of liquefied natural gas [LNG].
A number of large multinational companies are actively exploring, appraising and developing their gas discoveries into LNG projects in Mozambique,' ENRG president director Imam Agustino said in an official press release Friday.
'We are happy that our entry into Mozambique is in the early stages of gas development and our partner is the government. This shows that an Indonesian oil and gas company can already compete internationally by focusing on technological innovation, transparency and fairness,' he said.
For the last several years ENRG have been actively acquiring oil and gas blocks in Indonesia and has been in search of new reserves abroad, considering the rising demand for energy in developing countries, especially in Asia and Africa.