Lundin Petroleum sells its Indonesian business

Lundin Petroleum AB has announced the signing of a sale and purchase agreement (SPA) with PT Medco Energi Internasional TBK (‘Medco’), to sell its oil and gas assets in Indonesia. The Indonesian assets include the non-operated interest in the producing Singa gas field and the operated interests in the South Sokang and Cendrawasih VII Blocks, as well as the joint study agreement (JSA) in respect of the Cendrawasih VIII Block.

Lundin Petroleum and Medco signed the SPA on 8 October 2015, to sell the Indonesian assets for aggregate cash consideration of US$22 million, with an effective date of 1 October 2015. Lundin Petroleum may also become entitled to certain contingent payments and has an option to receive a future interest in the Cendrawasih Blocks. Completion of the transaction is subject to various conditions, including approval of the Government of Indonesia. Medco, a publicly listed Indonesian oil and gas company, is Lundin Petroleum’s partner in, and the operator, of the Singa gas field. Alex Schneiter, President and CEO of Lundin Petroleum comments:

"We are pleased with the sale of our assets in Indonesia, with net reserves of 0.9 million boe. We remain committed to our growth strategy in South East Asia where Malaysia continues to be one of Lundin Petroleum’s core areas.”

Lundin Petroleum holds a 25.8824% participating interest in the Singa gas field (Lematang PSC), a 100% participating interest in the Cendrawasih VII Block (Cendrawasih VII PSC), a 100% interest in the Cendrawasih VIII Block (Cendrawasih VIII JSA) and a 60% participating interest in the South Sokang Block (South Sokang PSC).

Adapted from a press release by Louise Mulhall

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/09102015/lundin-petroleum-sells-its-indonesian-business/