Mandala assumes operatorship of Lemang PSC
Thursday, May 25 2017 - 02:10 AM WIB
SGX-listed Ramba Energy Limited announced that the operatorship of Lemang PSC in Jambi Province has successfully been transferred from its subsidiary PT Hexindo Gemilang Jaya to Mandala Lemang Singapore Pte. Ltd.
The company said in a statement on Wednesday that this comes following receipt of the official registration of the transfer issued by the Indonesian upstream oil and gas authority SKK Migas on May 17, 2017.
?The transfer of operatorship will result in a significant reduction in the Group?s cost and is one of the measures that the Group is taking to bring the overall cash flow to a level that is sustainable even if the current oil and gas economic environment continues,? Ramba said in the statement.
The company said following the transfer of operatorship, Hexindo has been released and discharged from its obligations as an operator of the Lemang PSC with the understanding that with effect from May 17, 2017, Mandala will undertake to perform the obligations as the operator of the Lemang PSC.
It added that there will be no changes to the participating interests of Hexindo, Mandala and Eastwin Global Investment Limited in Lemang PSC following the transfer of operatorship, and their participating interests will remain the same at 31 percent, 35 percent and 34 percent respectively.
Ramba?s 80.4 percent-owned subsidiary Hexindo reached agreement in 2015 to farm out 35 percent interest in Lemang PSC to Mandala. Hexindo concurrently also made a back-to-back agreement with Eastwin, which owned the remaining 49 percent shares, under which the former will acquire 15 percent interest in Lemang PSC from the later. This resulted in Hexindo divesting a net 20 percent interest in Lemang PSC.
Editing by Reiner Simanjuntak