Oil And Gas Company Owned By Conglomerate Aburizal Bakrie Takes Over 49 Percent Participating Rights In The Sengkang Block, South Sulawesi

JAKARTA - The oil and gas company PT Energi Mega Persada Tbk has just taken corporate action. The issuer codenamed ENRG took over 49 percent of the participating interest owned by PT Energi Maju Abadi (EMA) in the Sengkang Block.

In the ENRG information disclosure published on the Indonesia Stock Exchange (IDX) website, quoted on Monday 9 August, this happened after the certainty of the signing of a conditional sale and purchase agreement between the company owned by conglomerate Aburizal Bakrie through its subsidiary and EMA for 100 percent ownership of EMA shares.

The remaining 51 percent of the participating interest in the Sengkang Block is owned by Energy Equity Epic (Sengkang) Pty Ltd. As time goes on, participation rights will be adjusted to 50:50 as per the previous agreement between EMA and EEES.

For information, the Sengkang Block has received an extension of the production sharing contract for 20 years in 2018. This contract will be valid from October 24, 2022, until 2042.

The Sengkang Block has approximately 420 billion cubic feet of gas (BCF) in the form of proven and measured reserves. In addition, the Sengkang Block produces approximately 40 million cubic feet of gas per day (MMSCFD). It is noted that the gas produced by the Sengkang Block is used to supply the needs of several power plants in South Sulawesi.

EMP Director Edoardus Ardianto said that currently, EMP operates 8 oil and gas assets and coal methane gas in Sumatra, Java, Kalimantan, and Mozambique, Africa. Several development plans are planned for the Sengkang Block after the acquisition.

"The company will issue the necessary funding to develop the Sengkang Block. Some of the activities include a 2D seismic geological study of 800 km, a 3D seismic survey of 100 km2, and the drilling of 13 exploration wells," said Edoardus.

EMP President Director Syailendra S. Bakrie added that his party is optimistic that the Sengkang Block has good prospects. He hopes that these development activities can increase the number of reserves and volume of gas production from Sengkang in the future.

"Gas production from Sengkang is believed to have a positive impact on EMP's performance in the future," he said.