EMP secures $275m loan from CSFB

JAKARTA: The country's second largest oil and gas firm PT Energi Mega Persada (EMP) has secured a US$275 million credit facility from Credit Suisse First Boston (CSFB) to refinance its loans and the operations of one of its oil blocks.

In a statement sent to the Jakarta Stock Exchange on Wednesday, the company said that the loan, received through its subsidiary PT Energi Mega Pratama Inc. (EMP Inc.), would be effective after obtaining an approval from shareholders through an annual general shareholders meeting scheduled on May 30.

"The credit facility will be used to refinance EMP Inc.'s (previous) credit facilities of $95 million and to cover the operational cost of Kangean block," the company said in the statement.

EMP plans to spend $400 million to develop Terang Sirasun, a major gas field in the Kangean block in East Java, and expects production to start in 2007.

The company's net profit for 2004 reached Rp 74.2 billion ($7.84 million), almost five fold what it booked the previous year. -- JP