Swedish exploration firm Lundin Petroleum has inked an agreement to sell its Indonesian assets to PT Medco Energi International TBK for US$22 million, subject to Indonesian government approval.
Medco, a publicly listed Indonesian oil and gas company, is Lundin Petroleum’s partner in, and the operator of the Singa gas field.
The deal includes 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 said it may also become entitled to certain contingent payments and has an option to receive a future interest in the Cendrawasih blocks.
Alex Schneiter, president and CEO of Lundin Petroleum said, "We are pleased with the sale of our assets in Indonesia, with net reserves of 0.9 MMboe. We remain committed to our growth strategy in Southeast Asia where Malaysia continues to be one of Lundin Petroleum’s core areas.”
Last week, the group’s subsidiary Lundin Malaysia resumed exploration drilling in Malaysia with the spud of the offshore Mengkuang-1 exploration well in license PM307 in Bertam field.
The well was drilled using the West Prospero jackup rig to atotal depth of approximately 1300mbelow mean sea level, which is expected to take approximately 30 days.
Mengkuang-1 will target hydrocarbons in Miocene aged sands 75km to the northwest of the Bertam field. Lundin Malaysia holds 75% interest in PM307, along with partner PETRONAS (25%).
Lundin Malaysia operates six blocks in Malaysia, namely PM307, PM319, PM308A, PM308B, PM328 and SB307/308.
Image: Malaysia drilling operation / Lundin Petroleum.
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