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EMP boosts output from Malacca Strait block
Oil and gas company PT Energi Mega Persada (EMP) said on Monday it was extracting an additional 350 barrels of oil per day (bopd) from an oil field in its Malacca Strait block, the volume of which would help boost output by round 11 percent this year
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il and gas company PT Energi Mega Persada (EMP) said on Monday it was extracting an additional 350 barrels of oil per day (bopd) from an oil field in its Malacca Strait block, the volume of which would help boost output by round 11 percent this year.
The publicly listed company reported in a statement to the Indonesia Stock Exchange (IDX) that its Malacca Strait PSC oil block in Riau had been producing an additional 350 barrels of oil since last week.
'The additional oil output shows that Malacca Strait has successfully developed a new field despite the fact that it is a mature block. Such an output increase will have a positive impact on the company's financial results,' chief executive officer Imam Agustino said in the statement.
The Malacca Strait PSC block is one of the 12 oil and gas blocks operated by the company. EMP operates and owns a 60.49 percent stake in the Malacca Strait PSC. OOGC Malacca Ltd. owns 32.58 percent and Malacca Petroleum Ltd. has 6.93 percent.
As of June 30, 2014, the block had proven and probable reserves of 10.9 million barrels of oil and 18,800 million cubic feet (mmscfd) of gas.
From January to December 2014, Malacca Strait PSC produced around 3,201 bopd and 6.2 mmscfd of gas.
Thus, the new field is expected to boost production from the block by around 12 percent this year.
Herwin W. Hidayat, head of investor relations, said that while the company had yet to calculate the possible financial contribution from the new production, it would certainly help the company meet its production target by year-end.
'We are aiming at producing around 55,000 barrels of oil equivalent per day [boepd] this year,' he told The Jakarta Post over the phone.
EMP's total production last year was around 12,800 barrels oil per day and 226 mmscfd of gas, equal to around 49,000 boepd. The target means the company is seeking to boost its output by around 12 percent this year compared with last year.
Herwin said the company could not yet disclose its total net sales and net profits last year, or its target for this year, but added that his company hoped to see increased production despite weak oil prices.
'We have little to worry about oil prices because 60 percent of our production is gas, the price of which continues to rise. The gas price has doubled in the past five years,' he said.
As of the third quarter of 2014, the company saw its net sales rise from US$576.96 million to $603.07 million as a result of increasing gas prices, while its net profits plunged by 80.2 percent year-on-year to $40.08 million.
