Lundin Petroleum AB has signed a sale and purchase agreement (SPA) with PT Medco Energi Internasional TBK to sell its oil and gas assets in Indonesia for $22 million. 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 Oct. 8 to sell the Indonesian assets for aggregate cash consideration of $22 million, with an effective date of Oct. 1. 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 Indonesian government.
Medco, a publicly listed Indonesian oil and gas company, is Lundin Petroleum's partner in, and the operator, of the Singa gas field.
Lundin Petroleum holds a 25.8824% participating interest in the Singa gas field (Lematang PSC), a 100% participating interest in the Cendrawasih VII Block (Cendrawasih VII PSC), a 100% interest in the Cendrawasih VIII Block (Cendrawasih VIII JSA), and a 60% participating interest in the South Sokang Block (South Sokang PSC).