AziPac Acquires Further Stake in Indonesian Gas Asset

Southeast Asia focused AziPac has signed an agreement to increase its stake to 100% in the Bone production-sharing contract (PSC) offshore Indonesia.

Azimuth Indonesia, a wholly owned subsidiary of AziPac, will acquire a 60% interest in the PSC from Jadestone Energy (formerly known as Mitra Energy).

AziPac currently holds a 40% non-operating interest in the licence and following completion, and subject to receipt of government approvals, AziPac will hold a 100% operating interest. This increase of interest is directly in line with AziPac’s growth strategy in Indonesia and the wider region, it said May 23. Jadestone farmed out 40% equity to AziPac in 2014.

“Further to today’s transaction, AziPac is currently executing on an additional set of opportunities to significantly increase its activity and footprint in 2017 and 2018,” Kosta Jovanovic, commercial director of Azimuth, commented.

According to Jadestone’s website, prospectivity of the Bone PSC is anticipated to be similar to the adjacent onshore Sengkang PSC, where gas is produced from Miocene carbonate reefs charged from Eocene coals. Energy World Corporation, operator of the adjacent Sengkang PSC, is constructing an LNG liquefaction facility on the coastline.

Shardul Sharma