SKK Migas Approves EMP's Plan to Develop Seng, Segat Gas Fields in Sumatra

Indonesian oil and gas exploration firm PT Energi Mega Persada Tbk (EMP) reported Monday that it has received official approval to proceed with the development of the Seng and Segat gas fields in the Bentu block in Riau, Sumatra, Indonesia. 

The development, approved by Indonesia's upstream regulator SKK Migas, will increase the block’s output by over 50 million cubic feet per day (MMcf/d) of gas from 2017, with the gas to be sold to Pertamina Dumai at a price ranging between $7.5 and $8 per million British thermal unit (MMBtu).

Gas production from the Bentu block stood at an average of 48.1 MMcf/d as of June 30, with the existing gas production sold to PLN Pekanbaru at $5.5 MMBtu, Riau Andalan Pulp & Paper at $5.2/MMBtu and Perusda Pelalawan at $4.7/MMBtu.

“This is a positive achievement by our Company. The ability to increase the gas output at an attractive selling price, is a good strategy. Once the additional gas output is commenced in 2017, Bentu PSC is expected to produce more than 90 million cubic feet gas per day,” Imam Agustino, EMP’s CEO, said in the press release.

EMP -- which operates 12 oil, gas, and coal bed methane projects in Indonesia and in Mozambique -- produced 11,454 barrels of oil per day and 218 MMcf/d of gas in the first half of 2015.

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