Bakrie Group' energy company, PT Energi Mega Persada Tbk (IDX: ENRG) allocating capital expenditure around US$100 million in 2021 for business expansion - Photo by the Company

JAKARTA (TheInsiderStories) – Bakrie Group’ energy company, PT Energi Mega Persada Tbk (IDX: ENRG) allocating capital expenditure of US$100 million in 2021, said the issuer on Tuesday (12/22). Most of the funds will be used for oil and gas mining activities in the Malacca Straits, Bentu, and Buzi blocks in Mozambique, East Africa.

The director, Edoardus A. Windoe, stated, “This is part of our effort to increase oil and gas production starting next year.”

As of the third quarter of 2020, Energi Mega‘ oil production reached 4,031 barrels of oil per day (bpd), up 71 percent compared to the same period last year of 2,354 bpd. While, gas production was 179 million cubic feet per day (MMCFD), rose by 28 percent from the a year ago about 140 MMCFD.

He elaborated, in the Malacca Straits, the producer has completed drilling three wells by June 2020. The block’ average oil and gas production is 3,017 bpd and 2.96 MMCFD, respectively. Then, Blok Bentu PSC in Riau, is currently doing 3D seismic in a 550 kilometers of areas.

The block has succeeded increased its gas production from 61.9 MMCFD in 2019 to 79.29 MMCFD in September 2020. In addition, offshore oil and gas block, in Mozambique, East Africa, has completed drilling of one well and is continuing to drill another wells. The Energi Mega through its subsidiary Buzi Hidrocarbons Pte. Ltd., owned 75 percent of the block.

Apart from these three main blocks, the energy producer is also carrying out the development of the Sangata Block in East Kalimantan. The company has a participating interest of 42 percent in the block. The unit has received an extension of the exploration period until April 2022.

Now, Energi Mega is also still preparing documents to the Financial Services Authority regarding rights issue plans. The company previously obtained shareholder permission on the corporate action on Nov. 30 to issues a maximum of 20 billion shares.

In the third quarter, the issuer posted a net sales of $239 million, an increased of 25 percent over the same period of last year with worth of $191.99 million. The net profit stood at $42.03 million, up 254 percent from 2019 amounting to $11.88 million, while operating profit grew 45 percent on an annual basis to $92 million.

Written by Editorial Staff, Email: theinsiderstories@gmail.com