EMP Temporarily Shuts Down Kangean Gas Supplies

PT Energi Mega Persada's subsidiary, EMP Kangean Ltd, has temporarily shut down gas supplies from the Pagerungan operation on Saturday, January 6th. EMP Kangean Ltd is the operator of the Kangean PSC in Indonesia.

The temporary shut-down came a s a consequence of demonstrations organized by the local Pagerungan Besar island residents, demanding revenue sharing from the gas production, additional infrastructure development, and community development priority for Pagerungan Besar island over the other islands.

As part of its commitment to being a corporate citizen, ENRG has actively carried out several community development and support programs in the area surrounding the Kangean PSC. Road construction, school renovation, teacher training, scholarships to local students, building a study center and teaching local women how to make nutritious food and beverages from natural ingredients are some of the programs ENGR has carried out. In addition, food aid is provided to disadvantaged groups on Pagerungan Besar island.

As a precautionary measure to ensure the safety of the personnel, ENRG evacuated most of its operational staff from the Kangean PSC. The plant and facilities at Pagerungan Besar are untouched, and is currently protected by security staff.

ENRG management is currently in talks with BP Migas on how to resolve the issue. Gas production from the Kangean PSC will resume as soon as the demonstration has ended. ENRG is using this period to turn around and re-commission the production facilities on the island.

ENRG will advise the market as appropriate on developments as they arise.