Bakrei Bros like Sengkang gas and they have money to improve production etc.

Energi Mega Persada (ENRG) Officially Controls the Sengkang Gas Block in South Sulawesi

06/08/2021, 13:33 WIB

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EmitenNews.com - PT Energi Mega Persada (ENRG) and its subsidiaries have signed a Conditional Sale and Purchase Agreement to take over 100% ownership in PT Energi Maju Abadi (EMA) which has 49% Participating Interest in the Sengkang Working Area (Sengkang Block) in Sulawesi South," said Edoardus Ardianto, Director of ENRG on Friday (6/8).

Edoardus explained that this Transaction will become effective after approval from the Government. The remaining 51% Participating Interest in the Sengkang Block is owned by Energy Equity Epic (Sengkang) Pty. Ltd. (EEES). In the near future, with reference to the agreement between EMA and EEES, the Participating Interest ownership structure will be adjusted to 50/50.

Furthermore, the Sengkang Block Cooperation Contract has also received a 20-year extension in 2018 from the Government of Indonesia, effective from October 24, 2022 until 2042.

For information, the Sengkang Block has around 420 billion cubic feet of gas in the form of proven and measured reserves. The gas block also produces approximately 40 million cubic feet of gas per day which is currently sold to several power plant projects in the South Sulawesi region.

Currently, the Company operates 8 oil and gas assets and coal methane gas in Sumatra, Java, Kalimantan and Mozambique, Africa.

ENRG will issue the necessary funding to develop the Sengkang Block gas project. Some of these development activities include geological studies, 2D seismic surveys (over 800 km), 3D seismic surveys (areas of 100 km2) and drilling of 13 exploration wells.

The Sengkang Block gas project has good prospects and the Company hopes that these development activities can increase the amount of reserves and volume of gas production in the future.

Edoardus added, "The increase in gas production will certainly have a positive impact on ENRG's financial performance in the future," he concluded.