JAKARTA. PT Energi Mega Persada Tbk (ENRG) has channelled a loan facility to one of its subsidiaries, PT Pema Global Energi (PGE), worth a total of USD 22.8 million.

There are 3 loan facilities received by PGE, consisting of a facility worth USD 16 million, another worth USD 1.3 million, and another of USD 5.5 million, given through PT EMP Energi Aceh (EEA).

According to the signed loan agreement, PGE is charged with an interest rate of 10% per annum for this facility. The payment of those facilities is due on December 31, 2028.

For the record, PGE is a joint venture established by ENRG and EEA. PGE is engaged in the mining and digging business. As of now, PGE claims a profit-sharing contract of Work Area B (PSC Area B) alongside Oil and Gas Management of Aceh.

The management of ENRG said that PGE is currently preparing for an exploration and development of the field in Work Area B of PSC. This support is projected to be able to generate positive contribution to the company’s consolidated financial performance in the future.

“With this transaction, it is expected that the company, through its subsidiary, PGE, may increase oil and natural gas reserve in the future, which will potentially boost production level and revenue that will be reflected in its future financial performance,” added the management of ENRG in the official statement. (KR/ZH)