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Lundin Petroleum sells its Indonesian business

Staff writer |
Lundin Petroleum announced the signing of an agreement with PT Medco Energi Internasional to sell its oil and gas assets in Indonesia.

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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 October 8, 2015, to sell the Indonesian assets for aggregate cash consideration of $22 million, with an effective date of October 1, 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. ■


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