PT Energi Mega Persada Tbk. reported that its 60.49% owned and operated Malacca Strait PSC block, just commenced its first commercial gas volume of 8.5 million cubic feet per day to the BOB PT Bumi Siak Pusako - PT Pertamina Hulu Energi ('BOB'). The gas output is produced from the block's Kuat gas field and is sold at $8.00/mmbtu with an escalation term of 3% per annum from July 2014 to August 2020. BOB uses the gas output as fuel for its power generator to lift oil.
In the first quarter of 2014, the Malacca Strait PSC produced around 3,288 barrels oil per day (based on EMP's 60.49% stake). Mr. Imam Agustino, EMP's CEO, said 'The additional gas output is expected to have positive impact on the Company's financial results in the second half of 2014.'