Lundin Sells its Indonesian Business

Lundin Petroleum on Friday announced sale of its oil and gas assets in Indonesia to Medco Energi Internasional for $22 million.

"We are pleased with the sale of our assets in Indonesia, with net reserves of 0.9 million barrels of oil equivalents. We remain committed to our growth strategy in South East Asia where Malaysia continues to be one of Lundin Petroleum’s core areas,” Alex Schneiter, President and CEO of Lundin Petroleum stated.

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 may also become entitled to certain contingent payments and has an option to receive a future interest in the Cendrawasih Blocks, the company said.

The Swedish firm holds a 26 percent participating interest in the Singa gas field (Lematang PSC), a 100 percent participating interest in the Cendrawasih VII Block (Cendrawasih VII PSC), a 100 percent interest in the Cendrawasih VIII Block (Cendrawasih VIII JSA) and a 60 percent participating interest in the South Sokang Block (South Sokang PSC).