Energy Mega Subsidiary Of Bakrie Conglomerate Starts Gas Production In Korinci Baru Riau, Sold To PLN 4 US Dollars Per MMBTU

JAKARTA - The oil and gas company owned by the Bakrie family conglomerate PT Energi Mega Persada Tbk (ENRG) received good news from one of its subsidiaries. It is EMP Korinci Baru Limited which has just restarted gas production from the PSC Korinci Baru Block in Riau, Sumatra.

"The block flows an average of 2.5 million cubic feet of gas per day," said Energy Mega President Director Syailendra Bakrie in his statement, quoted on Wednesday, February 23.

In addition to starting production, the gas produced by Energi Mega's subsidiary already has customers. According to Syailendra, the gas produced by Korinci's EMP is sold to PT Perusahaan Listrik Negara (Persero) or PLN at a price of US$4 per MMBTU.

Syailendra added that the company has also succeeded in re-activating several gas wells in the New Field and West Baru. These gas wells had not produced since 9 years ago.

That way, said Syailendra, the company is committed to maintaining the continuity of the gas supply to PLN Riau until 2026 in accordance with the gas allocation determination from the Ministry of Energy and Mineral Resources.

"Additional gas production from the Korinci Baru PSC will have a positive impact on the Company's overall production, sales and Net Profit. We hope that this will add value to the Company's shareholders in the future," said Syailendra.