STOCKHOLM, Sweden -- Lundin Sareba has agreed a production sharing contract (PSC) amendment with SKKMigas.
The agreement substitutes the existing Sareba block with new acreage offshore northeast Indonesia, designated Cendrawasih VII (CVII).
Lundin has been awarded this area because the existing block acreage has been declared a protected nature conservation area.
CVII is a little-explored area covering 5,545 sq km (2,141 sq mi). It contains the shallow water portion of the Mamberamo delta, an undeveloped gas discovery in Pliocene turbidite reservoirs, and large carbonate build-ups identified from a 950-sq km (367-sq mi) 3D seismic survey acquired in 2009.
Lundin plans to reprocess the survey ahead of possible drilling.
The fulfilled Sareba block commitments have been transferred to the new PSC and the outstanding financial commitment to purchase geological and geophysical data will be completed in year one of the PSC amendment agreement.