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ublicly-listed energy company PT Energi Mega Persada (EMP) expects more than a double increase in total revenues this year to approximately Rp 4 trillion (about US$448 million) following the acquisition of the Offshore Northwest Java PSC (ONWJ) oil and gas block and the commercial operation of the company’s Kangean block.

EMP president director Imam Agustino said the newly acquired ONWJ and Kangean blocks would make a significant contribution to the company’s total oil and gas production, which would in turn help boost revenues.

“We hope to see more than a double increase in revenue this year compared to last year. We are also targeting to reap $250 million in EBITDA [earnings before interest, taxes, depreciation and amortization] this year, increasing from more than $83 million in 2011,” Imam said during a conference call last week.

The company expected to book about Rp 1.8 trillion in total revenues in 2011, a 50 percent increase from Rp 1.2 trillion in 2010

Last month, EMP announced that its subsidiary, EMP International Limited, acquired a 36.7 percent participating interest in the ONWJ block from Chinese oil company CNOOC for $212 million. The oil block, which produced an average of 62,000 barrels of oil equivalent (boe) per day, was expected to contribute about 23,000 boe to EMP’s total production.

“After acquisition on ONWJ, we hope to reach an average oil and gas production of 40,000 boe per day. Before ONWJ acquisition, our average production was only 16,600 boe per day,” Imam said.

“We are pleased to have acquired ONWJ PSC, which has already started production and has given a direct contribution to us,” he added.

EMP obtained loans amounting to $200 million from Credit Suisse to finance the acquisition on ONWJ. Imam added EMP would also enjoy additional revenue from oil and gas production through the Kangean Terang block in offshore East Java, which is estimated to produce an average of 25,000 boe gas per day.

“Kangean Terang will start production in April or May this year,” Imam said. (rcf)