At Kangean: Seadrill's jack-up Sakhalinskaya
EMP finalises Kangean sales
Indonesia's Energi Mega Persada has finalised gas sales agreements to underpin its $380 million Kangean gas development off East Java, Indonesia.
EMP Kangean will start to deliver 265 million cubic feet per day of gas to buyers from late 2007, reported Dow Jones.
The buyers include state-owned oil and gas company Pertamina, listed natural gas distribution company Perusahaan Gas Negara and state-owned electricity company Perusahaan Listrik Negara.
The contract maturities span from two to 16 years, said Kardaya Warnika, the head of the Indonesian upstream oil and gas regulating body.
EMP had aimed to sign these gas sales agreements before year-end 2005 with all its Kangean block customers - PLN, Petrokimia Gresik, PGN, Pertamina and Indogas that would replace the existing Trans-Java Kangean sales contract.
These customers account for a combined 979 trillion British thermal units of gas on contracts extending to 2024, while additional volumes will be sold opportunistically.
EMP last year acquired its 100%-operated interest in the Kangean block from BP. The block has independently certified proven and probable reserves of 1.6 trillion cubic feet of gas and 1 million barrels of oil.
EMP has started drilling operations on the Kangean development using the Seadrill jack-up Sakhalinskaya.