Lundin Petroleum officiallly sells its Indonesian business
Lundin Petroleum AB ("Lundin Petroleum") is pleased to announce 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 USD 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 barrels of oil equivalents. 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 percent participating interest in the Singa gas field (Lematang PSC), a 100 percent participating interest in the Cendrawasih VII Block (Cendrawasih VII PSC), a 100 percent interest in the Cendrawasih VIII Block (Cendrawasih VIII JSA) and a 60 percent participating interest in the South Sokang Block (South Sokang PSC).
Lundin Petroleum is a Swedish independent oil and gas exploration and production company with a well balanced portfolio of world-class assets primarily located in Europe and South East Asia. The Company is listed on NASDAQ Stockholm (ticker "LUPE"). Lundin Petroleum has proven and probable reserves of 187.5 million barrels of oil equivalents (MMboe) as at 31 December 2014 and 515 MMboe in respect of the Johan Sverdrup field as at 11 August 2015.