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il and gas production for publicly-listed PT Energi Mega Persada (ENRG) will likely see a lift after the arrival of a floating production unit (FPU) vessel for its Kangean block.

ENRG expected to realize a “massive” 140 percent increase in its oil and gas output this year to the equivalent of 40,000 barrels of oil a day, CEO Imam Agustino said during a press statement distributed on Friday.

That compares with a 27 percent average production increase last year to 16,700 barrels oil equivalent per day (boepd).

“The gas volume from our Kangean PSC block’s Terang field will play a major role in the company’s growth story for the next 24 months. A significant part of our additional oil and gas output in 2012 comes from the Terang field,” Imam said.

The arrival of a production vessel from Singapore’s Sembawang shipyard on April 6 in the Terang offshore gas field will support ENRG in reaching the output estimate, as it is part of the Kangean block in East Java, he added.

“We hope that Kangean Terang will start production in the end of May, or in the worst case, in early June,” ENRG chief of investor relations Herwin Hidayat said in a telephone interview.

Terang gas field is expected to reach its peak production capacity of 300 million cubic feet gas per day, which is equivalent to 50,000 barrels of oil a day, compared with 25,000 boepd at present, according to Herwin.

“With an ownership of 50 percent, ENRG will receive 12,500 boe of gas per day from Kangean. The field will reach its peak capacity next year and ENRG will enjoy 25,000 boepd of gas,” he added.

The Kangean PSC, which is estimated to have reserves of 9.6 million barrels of oil and 1.3 trillion cubic feet of gas, is also 25 percent owned by Japan’s Mitsubishi group and 25 percent by Japan’s Japex.

The block produced 15.5 million cubic feet of gas a day and pumped 1,360 barrels of oil per day last year.

ENRG’s additional output will also come from its Offshore Northwest Java (ONWJ) PSC oil and gas field and Bentu PSC gas fields in Riau in Sumatra.

“The main contributors for this year’s production are the Kangean PSC and ONWJ blocks,” Herwin said, targeting between 58,000 and 60,000 boepd oil and gas output by 2013.

Through its subsidiary EMP International Limited, ENRG acquired a 36.7 percent participating interest in the ONWJ block from Chinese-owned CNOOC. The ONWJ block is expected to produce an average of 62,000 boepd of oil and gas.

ENRG is expecting that increasing production volumes will boost its revenue to about Rp 4 trillion (US$448 million) this year, with $250 million in EBITDA (earnings before interest, taxes, depreciation and amortization).

The company reported 69 percent revenue growth to Rp 2.12 trillion last year, boosting net profits to Rp 68.56 billion after suffering a net loss of Rp 62.32 billion in 2010.

Shares in ENRG rose 3.57 percent after the company announced the arrival of a production vessel to boost its oil and gas output, closing Friday’s trading session at Rp 174 apiece. The company had more than a Rp 7 trillion market value.

The vessel, according to Herwin, was leased from Norwegian BW Offshore company.

“We will lease the vessel for 14 years. The funds for the leasing will be part of operational costs,” Herwin said, declining to disclose the amount of money ENRG had spent to lease the vessel.