Salamander enters deal with Medco, Saka on Bangkanai PSC

London-based, Asia-focused exploration and production firm Salamander Energy Plc has announced two separate transactions that resulted in a chance in its ownership in the Bangkanai PSC, Central Kalimantan.

First, Salamander said it has agreed an asset swap with PT Medco Energi Internasional that will see it acquiring 15 percent interest in the Bangkanai PSC, taking its interest in the license to 100 percent.

Under the deal, the Medco?s 15 percent in Bangkanai will be swapped with Salamander?s 21 percent participating interest in the Simenggaris PSC and 41.7 percent participating interest in the Bengara-1 PSC.

The second transaction meanwhile, Salamander said it has reached agreement to farm-out a 30 percent interest in the Bangkanai PSC to PT Saka Energi Indonesia.

On completion of the transaction, and the Medco?s swap agreement, Salamander will have a 70 percent operated interest in the Bangkanai PSC.

The Bangkanai PSC contains the Kerendan gas field which is undergoing development. To date, 122.6 Bcf has been committed for sale under a GSA with PT PLN. A further 160 Bcf of contingent resource is identified in the field, providing potential for commercialization of additional gas volumes.

The field is expected to be on stream in 2014.

Editing by Dadan Wijaksana