ENRG Acquires Sengkang Block, Sets Up More Aggressive Move

PT Energi Mega Persada Tbk (EMP) took over the 49 percent participating interest (PI) in the Sengkang Block. The Bakrie Group energy company, through its subsidiary, has signed a conditional sale and purchase agreement to take over a 100 percent stake in PT Energi Maju Abadi, the owned of 49 percent of Sengkang Block's PI. However, this transaction will only be effective after obtaining government approval.

Referring to the agreement between Energi Maju Abadi and Energy Equity Epic (Sengkang) Pty Ltd, the PI structure in the Sengkang Block will later be adjusted to 50 percent owned by EMP and 50 percent owned by Energy Equity. Energy Equity is the owner of 51 percent PI in the working area located in South Sulawesi Province. "The company will provide the necessary funding to develop the gas project in the Sengkang Block," EMP Finance Director, Edoardus Ardianto, said in a written statement, Friday (8/6).

The development activities include geological studies, 800 km 2D seismic surveys, 100 square km 3D seismic surveys, and 13 exploration wells. EMP President Director Syailendra S. Bakrie believes that the Sengkang Block has good prospects. Therefore, the development activities can increase the number of reserves and gas production volumes of the block. "The increase in gas production will certainly have a positive impact on the company's financial performance," he said.