Sweden's Lundin Petroleum has agreed to sell its Indonesian oil and gas assets to PT Medco Energi Internasional TBK for US$22 million.
The Indonesian assets include a non-operated interest in the producing Singa gas field and 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 may also become entitled to certain contingent payments and has an option to receive a future interest in the Cendrawasih Blocks.
Medco, a publicly listed Indonesian oil and gas company, is Lundin Petroleum's partner in, and the operator, of the Singa gas field.
Alex Schneiter, President and CEO of Lundin Petroleum comments: "We are pleased with the sale of our assets in Indonesia, with net reserves of 0.9 MMboe. We remain committed to our growth strategy in South East Asia where Malaysia continues to be one of Lundin Petroleum's core areas."
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).