18/02/2022

Legitimate! Bakrie Group Issuers Manage 49% of Sengkang Oil and Gas Block

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Photo The West Ganal block, operated by ENI West Ganal. (Doc SKK Migas)

Jakarta, CNBC Indonesia - PT Energi Mega Persada Tbk (ENRG/EMP) as one of the issuers of Bakrie Group in the oil and gas sector said it had received government approval regarding direct control changes or transfer of all shares of PT Energi Maju Abadi (EMA) to the company and its subsidiaries.

EMA has 49% participation rights or participating interest (PI) in the Sengkang Cooperation Contract Working Area (KKS Sengkang), South Sulawesi. The remaining 51% participating interest in KKS Sengkang is owned by Energy Equity Epic (Sengkang) Pty. Ltd (EEES).

This is a follow-up to the Conditional Buying and Selling Agreement signed by EMP and its subsidiaries in August 2021 to acquire EMA.

KKS Sengkang has about 420 billion cubic feet of gas in the form of proven and measurable reserves. The gas block also produces an average of 40 million cubic feet of gas per day today. Gas produced by KKS Sengkang is sold to several power plant projects in the South Sulawesi region. KKS Sengkang has received a 20-year extension in 2018 from the Government, which is effective from October 24, 2022 until 2042.

Edoardus Windoe, Finance Director of EMP, explained that it will provide the necessary funding to develop KKS Sengkang. "Some of these development plans include geological studies, 2D seismic surveys (along 800 km), 3D seismic surveys (covering an area of 100 km2), and drilling in 13 exploration wells," Edoardus said on Friday (18/2/2022).

Syailendra Bakrie, President Director of EMP, believes that KKS Sengkang has good prospects.

"We hope that the development plan can be realized soon to increase the amount of reserves and gas production volumes in the future. The increase in gas production will certainly have a positive impact on the company's financial performance," said Syailendra.