SYDNEY, Australia – AWE Ltd. has completed the sale of a 50% participating interest in the Northwest Natuna production sharing contract (PSC), including the 101 MMbbl (K-Sand) Ande Ande Lumut (AAL) oil project, to a subsidiary of Santos Ltd. for $188 million. The Indonesian Ministry of Energy and Mineral Resources and the regulator, SKK Migas, have approved the sale of a 50% participating interest and the transfer of operatorship to Santos.
Bruce Clement, AWE’s managing director, said the sale would set the stage for a new period of growth for the company. “This will enable AWE to comfortably fund its planned capital expenditure and exploration programs from operating cash flow, with enough flexibility and financial capacity to pursue further growth opportunities in Australasia and Asia,” he said. “In addition to the Ande Ande Lumut K-Sand reservoir, we have identified further opportunities in the deeper G-Sand reservoir and a number of exploration prospects within the Northwest Natuna PSC.”