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AziPac to take over Bone PSC

By  AOG Staff Tuesday, 23 May 2017 10:17
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AziPac is ready to take over the Bone production sharing contract (Bone PSC) offshore Indonesia, after partner Jadestone Energy withdraws itself from the license.

Map of the Bone PSC, from Jadestone.

The Bone PSC is operated by Mitra Energy (Indonesia Bone) Ltd., a wholly owned subsidiary of Jadestone, with 60% working interest. AziPac’s Azimuth Indonesia Ltd. holds the remaining 40%.

An agreement has been reached to transfer the 60% working interest and operatorship to Azimuth, subject to government approval.

“Today’s news marks the latest step in the growth of our portfolio and allows AziPac to drive the next key milestone in unlocking the potential of the Bone licence,” says Kosta Jovanovic, commercial director of Azimuth.“With multiple prospects defined and a range of commercialization options in place, AziPac is now poised to move into a low-cost drill out in 2018.”

AziPac says it is currently executing on an additional set of opportunities to significantly increase its activity and footprint in 2017 and 2018.

Jadestone says that the move is a further key step in releasing the company from non-strategic exploration assets.

“Our decision to withdraw from this PSC is in line with the company’s new strategic focus on increasing value through production and development rather than long dated, frontier exploration. This withdrawal is at no cost to the company as we continue to re-shape the portfolio,” says Jadestone Energy Executive Chairman Paul Blakeley. “The new management team’s efforts to achieve a balanced portfolio of production and development assets with additional growth from low risk exploration has already shown substantial results in our first nine months.”

Following the March closing of the acquisition of a 50% interest in the producing Ogan Komering PSC in Indonesia, Jadestone Energy is now aiming to complete the purchase of an interest in two appraised gas fields offshore Vietnam in the Nam Con Son basin and bring them onstream in late 2019. The company also plans to further develop its existing assets in Vietnam’s Malay Basin, the Nam Du and U Minh gas fields.

Jadestone Energy’s recent portfolio activity includes:

  • The acquisition of the 100% operated interest in the Stag oil field in Australia from Quadrant Energy and Santos, bringing the first production and cash flow in the company’s history
  • The acquisition of a 50% participating interest in the Ogan Komering PSC in Indonesia from Repsol, the first production in Southeast Asia in the company’s history
  • The acquisition of a 30% participating interest in Block 05-1b&c in Vietnam from Inpex, the company’s most mature near term development asset with FID expected in Q3 2017, and subject to the exercise of statutory pre-emption rights by Vietnam Oil and Gas Group (PVN)
  • An acceleration of efforts on applications for license extensions, sale or farm-downs where appropriate, and
  • Relinquishments that release the business from high-risk, non-carried exploration activity.
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