Medco buys Lundin’s Indonesian business

PT Medco Energi Internasional TBK, Jakarta, has agreed to acquire Lundin Petroleum AB’s Indonesian oil and gas assets for aggregate cash consideration of $22 million. The deal is effective Oct. 1.

The assets, which have 900,000 boe of net reserves, include nonoperated 25.8824% interest in the producing Singa gas field; 60% operated interest in the South Sokang block; and 100% operated interest in the Cendrawasih VII and VIII blocks, which include the joint study agreement for Cendrawasih VIII.

Lundin may also become entitled to certain contingent payments and has an option to receive future interest in the Cendrawasih blocks.

“We remain committed to our growth strategy in southeast Asia where Malaysia continues to be one of Lundin Petroleum’s core areas,” said Alex Schneiter, Lundin president and chief executive officer.

The company last week reported that it spud the Mengkuang-1 exploration well on offshore Malaysian Block PM307 (OGJ Online, Oct. 2, 2015); and earlier this year started production from Bertram field off the east coast of Peninsular Malaysia (OGJ Online, Apr. 14, 2015).

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