Lundin expects govt to approve Medco transaction

By Romel S. Gurky

Swedish firm Lundin Petroleum announced on Wednesday that it is waiting for the government to approve the sales of its assets in Indonesia to IDX-listed PT Medco Energi Internasional.

?Completion of the transaction is subject to Indonesian governmental approval and is expected to occur during the first quarter of 2016,? the firm said in a statement.

In October 2015, Lundin announced the signing of a sale and purchase agreement to sell its business in Indonesia to Medco for a cash consideration of US$22 with an effective date of Oct. 1, 2015.

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 in respect of the Cendrawasih VIII Block.

Lundin may also become entitled to certain contingent payments in respect of the Singa gas field and retains an option to receive a future interest in the Cendrawasih Blocks.

The production from the Singa field has been substantially in line with forecast during the reporting period. Production Singa field reached 1,500 boepd in Juli - September this year. The gas demand has been lower than normal during September and October 2015 due to excessive haze caused by forest fires in Indonesia which has negatively impacted production levels during these months, according to the firm.

Editing by Johannes Simbolon