EMP plans $196m investment in 2010

The Jakarta Post, Jakarta | Tue, 12/15/2009 10:09 PM

PT Energi Mega Persada (EMP), the nation’s second-largest publicly listed oil company, is targeting capital spending of US$196 million in 2010, derived mostly from a planned rights issue to commence in January.

The rights issue is expected to raise Rp 4.8 trillion ($502 million) in proceeds.

Of that amount, EMP vice president for capital markets Herwin H. Hidayat said Tuesday, $111 million would be used to help finance the company’s capital expenditure, while the rest would come from EMP’s internal cash flow.

“The capital spending will be allocated for operating expenditure for all our operating blocks,” EMP president director Imam P. Agustino said during a public exposé in Jakarta.

He added the company was also looking to acquire more assets in Indonesia and abroad, but did not elaborate.

EMP’s blocks, which include the Kangean block, Malacca block and several others, produce a total of 13,000 barrels of oil per day (bpd) and 88 million standard cubic feet of gas per day (MMSCFD).

“Thirty to 50 percent of the capital expenditure will be spent on the Kangean and Malacca blocks,” Herwin said.

He added the money generated from the planned rights issue “would change the faith of the company” that has seen year after year of losses. (adh)