KrisEnergy completes acquisition of interest in Block A
Tuesday, January 13 2015 - 01:03 AM WIB
SGX-listed upstream oil and gas firm KrisEnergy Ltd. said it has completed the acquisition of a 41.6666 percent working interest in Block A production sharing contract in Aceh from Premier Oil Overseas B.V.
?Approval for the change of control has been received from the Government of Indonesia and the provincial government of Aceh,? the company said in a statement Monday.
KrisEnergy reached an agreement in July of last year with Premier Oil for the acquisition of 100 percent of Premier Oil Sumatra (North) B.V., which holds the Block A stake, for a total after-tax consideration of US$40 million.
Block A is located onshore Sumatra in the semi-autonomous region of Aceh and covers an area of 1,803 sq km. It contains several gas condensate discoveries including the Alur Rambong, Alur Siwah and Julu Rayeu fields, which were approved for development in 2007. These gas condensate discoveries are expected to go into development with first gas from Alur Rambong anticipated in 2017. The block also contains the Matang gas discovery, which requires further appraisal prior to being developed via tie-back to the initial facilities, and the high-CO2 Kuala Langsa gas discovery.
Richard Lorentz, Executive Director and Director Business Development of KrisEnergy, said: ?With all approvals now in place for our transaction, we are very excited to be able to progress commercialization of Block A Aceh with our joint-venture partners. We aim for a 50:50 mix of oil to gas production in our portfolio and Block A Aceh will maintain that balance following our two oil developments in the Gulf of Thailand due on stream in 2015 and the Lengo gas field offshore East Java thereafter. ?
PT Medco E&P Malaka is the operator of the Block A Aceh PSC with a 41.6667 percent working interest and Japex Block A Ltd. holds the remaining 16.6667 percent.
Editing by Reiner Simanjuntak