Indonesia’s upstream oil and gas regulator, SKK Migas, has approved the transfer of a 35% interest in the Lemang production-sharing contract (PSC) from PT Hexindo Gemilang Jaya to Mandala Lemang Singapore.
PT Hexindo is 80.4% owned Indonesian subsidiary of Singapore-based upstream company, Ramba Energy.
According to Ramba, Lemang has a relatively low operating and capital cost structure, which is favorably positioned for development, even in the current oil price environment, and look forward to progressing the project through 2016 and bringing it into production.
“Despite the current low oil price environment, we are excited to have reached completion and look forward to our long term partnership with Mandala and at the same time, taking advantage of the lower cost environment to reduce our development costs further. This is a further upside to the already low cost of production we expect from the Lemang block.” said David Soeryadjaya, CEO of Ramba
Mandala's team will bring its technical experience and capabilities to work actively alongside the Ramba team. Mandala is a Southeast Asia-focused explorer backed by global investment firm, Kohlberg Kravis Roberts (KKR).
KKR partnered with Mandala in early 2015 to bring complementary technical and financial capability to regional independent and national operators across the exploration, development and production spectrum in order to drive portfolio growth and maximize asset potential.
The Lemang block is located in the northern most part of the South Sumatra basin and about 300km from Singapore. The block has transportation infrastructure already in proximity, and is ideally situated for oil and gas distribution to regional markets.
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