Indonesia's Energi Mega Persada Picks Up Stake in Mozambique Gas Asset
Indonesia’s energy company Energi Mega Persada (ENRG) on Friday announced that it has acquired oil and gas Exploration and Production Concession Contract (EPCC) for Buzi Block in Mozambique for $175 million.
The company will have a 75 percent participating interest in the block while the remaining 25 percent will be owned by Empressa Nacional de Hidrocarbonetos (ENH),. The block is projected to start production in 2017.
Buzi EPCC Block has 283 billion cubic feet of proved and probable gas reserve. In addition, the block has 13.4 trillion cubic feet of gas prospective resources, ENRG said in a statement.
“Mozambique has emerged as a new giant in natural gas. More than 100 tcf were recently discovered, and Mozambique is the next emerging region for oil and particularly gas and could become the world's third largest exporter of liquefied natural LNG. A number of large multinational companies are actively exploring, appraising and developing their gas discoveries into LNG projects in Mozambique. We are happy that our entry to Mozambique is in the early stages of gas development and our partner is the government. This shows that Indonesian oil & gas company can already compete internationally by focusing on technological innovation, transparency and fairness,” said ENRG President Director Imam Agustino.
On top of the 283 billion cubic feet of proved & probable gas reserve near-term production from Buzi discovery, the Buzi EPCC Block offers other upsides, which include the followings:
- 13.4 trillion cubic feet of gas recoverable prospective resources. The extensive inventory of leads and prospects low risk gas play, are analogous with the existing discoveries.
- Strategic location which is surrounded by such producing gas fields as Pande, Temane, and Inhassoro oil field.
- Medium term commercial production is expected as early as year 2017.
- Attractive Concession Contract terms.
- Available gas pipeline infrastructure from Mozambique to South Africa.
- High domestic and export gas demand. Particularly for Mozambique’s electric generation and petrochemical industry, specifically natural gas as feedstock for fertilizer production.
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