Japan Petroleum Exploration (JAPEX) has divested its stake in Energi Mega Pratama Inc. (EMPI) to the latter’s parent company, Energi Mega Persada (EMP), relinquishing its indirect interest in an offshore block in Java, Indonesia.
The Japanese player transferred its 25% interest of in EMPI to EMP in what it says is a strategic move. EMPI’s subsidiaries Kangean Energy Indonesia (KEI) and EMP Exploration (EMPE) hold 60% and 40% stakes, respectively, in the Kangean block.
This decision follows the completion of its planned exploration and development programs, which have been ongoing since JAPEX acquired interests in the block in 2007 by investing in EMPI. The Japanese player noted that the fact that Kangean is a mature producing asset was factored into the decision.
While mainly producing gas from fields such as Teran, Sirasun, and Batur (known as the TSB gas complex), the block is also home to a producing oil field, Pagelungan Utara . Teran has been producing since May 2012, while production at Sirasun and Batur started in March 2019 .
Produced gas is processed at a floating production unit and is supplied via pipeline to a national fertilizer plant, a national electric power company, and others near Surabaya in East Java.
Besides the divestment, JAPEX acquired a 50% stake in EMP Gebang (EMPG), a subsidiary of EMP, enabling it to get in on Indonesia’s Gebang production sharing contract (PSC).
Situated in northern Sumatra, Gebang comprises discovered fields offering upside potential and what the Japanese player considers favorable reserve estimates. The asset’s undeveloped gas fields are also thought to offer “substantial” exploration upside.
In addition to continuing to pursue additional gas field discoveries in the PSC, JAPEX intends to lead the development and early production of the discovered undeveloped Secanggang gas field.
Other Indonesian blocks have been teeming with activity lately as well. Earlier this month, PSCs were signed with Indonesia’s oil and gas regulatory body, SKK Migas, for two exploration blocks in Indonesian waters . These were secured through a competitive bidding process in the second round of the Indonesia Petroleum Bid Round 2024.
The first block, Serpang , is operated by Petronas (51%), with INPEX (35%) and SK Earthon (14%) as partners. Pertamina is the operator of the second block, Binaiya , with a 56% stake, with SK Earthon and Petronas holding 22% interests each.
Before that, Coro Duyung, a subsidiary of Southeast Asia’s Coro Energy, received the green light from its shareholders to sell its interest in the Duyung PSC, holding the Mako field, in the West Natuna Sea off the coast of Indonesia to Conrad Asia Energy.