Jakarta. Indonesia’s Medco Energi Internasional has signed a $22 million sale and purchase agreement with Sweden’s Lundin SEA to acquire the Indonesian oil and gas assets of the Swedish company, both companies announced in separate statements last week.
Lundin said in a statement published on its website dated Oct. 9 that the assets being sold include the non-operational interest in the producing Singa gas field in Central Sumatra and the operational interests in the South Sokang, in the Natuna Sea, and Cendrawasih VII Blocks, offshore of Papua.
Lundin SEA Holdings is an affiliate of Lundin Petroleum, a Swedish oil and gas company with assets mainly in Europe and Southeast Asia.
Medco is a conglomerate controlled by the Panigoro brothers and is the largest oil and gas company in Indonesia.
“We are pleased with the sale of our assets in Indonesia, with net reserves of 0.9 million barrels of oil equivalents,” said Alex Schneiter, president and chief executive of Lundin Petroleum.
“We remain committed to our growth strategy in Southeast Asia where Malaysia continues to be one of Lundin Petroleum’s core areas.”
In a separate statement, Medco’s president director and chief executive Lukman Mahfoedz said the acquisition is “in line” with the Company’s goal to maximize production of Singa gas field in Lematang block and it is expected to contribute to Medco Energi’s total gas production by 42 million standard cubic feet per day (MMSCFD) in 2015.
“We are expecting the government endorsement for this transaction would be given within a short time since MedcoEnergi is the operator of this block. We will continue to supply gas to the state-owned electricity company [PLN] with a decent price,” the statement said.
Both Medco and Lundin said completion of this transaction is conditional upon approval from Indonesia’s authorities.