- Energy World's (EWC) EEES subsidiary enters a joint operating agreement with Indonesia's PT Energy Maju Abadi (EMA) for the Sengkang PSC
- The project is the first integrated private gas and power development in Indonesia
- CEO Stewart Elliott says the partnership will help develop the Sengkang PSC to its full potential
- Shares are trading 4.9 per cent higher at 8.6 cents each at 4:12 pm AEST
Energy World's (EWC) subsidiary, Energy Equity Epic Sengkang (EEES), has entered into a joint operating agreement with Indonesia's PT Energy Maju Abadi (EMA) for the Sengkang PSC.
The Sengkang PSC comprises a number of gas fields in southern Sulawesi, with the project being the first integrated private gas and power development in Indonesia.
Established in 2018, EMA is an upstream oil and gas explorer and developer that is a privately owned subsidiary of Bakrie Group.
The two parties first entered into deeds of assignment back in November 2018, through which EMA has taken up 49 per cent participation in the Sengkang PSC, with EEES taking the remaining 51 per cent.
EWC said the arrangements were fully approved by Indonesia's minister of energy and mineral resources, with the partnership set to be adjusted to 50:50 participation at a set date in the future.
Energy World CEO and Chairman Stewart Elliott commented on the deal: "We welcome this new partnership that combines the strength of EEES and EMA [and] will enable the development of the Sengkang PSC to its full potential as we migrate from an SKK Migas cost recovery structure of operation that expires in October 2022 to a gross split structure for 20 years until October 2042.”
EWC anticipates the partnership will benefit its business in Indonesia.
Energy World shares were trading 4.9 per cent higher at 8.6 cents each at 4:12 pm AEST.