Repsol Sells Stake in Indonesia Block

Repsol has sold its 50% stake in Ogan Komering production-sharing contract (PSC) in Indonesia to Singapore-headquartered Jadestone Energy for $5.8mn.

Jadestone Energy and Jadestone Energy International Holdings, a wholly-owned subsidiary of Jadestone Energy, have signed sales and purchase agreement for the acquisition of all issued and outstanding shares in Talisman Ogan Komering, which holds a 50% interest in the PSC. The remaining 50% in the PSC is held by Pertamina. Indonesia's national oil company. Talisman, together with Pertamina, operates the PSC through a joint-operated body.

Executive chairman Paul Blakeley said: “Ogan Komering is well understood by us, and will bring important cash flows to the Company today, but more significantly has the potential for low-cost, early development of recent gas discoveries, to provide growth going forward. Working cooperatively with Pertamina, this will help to meet growing local energy demand into 2018 and beyond.”

The production rate of the Ogan Komering block since the acquisition effective date of July 1, 2016 has averaged 3,000 boe/d with about 70% oil and 30% gas.

Shardul Sharma