Lundin Petroleum's wholly owned subsidiary, Lundin Sareba BV, has entered into a production sharing contract (PSC) amendment with SKKMigas to substitute the existing Sareba Block acreage with new acreage named Cendrawasih VII (CVII), offshore north eastern Indonesia, the company reported in a news release.
Under the amended agreement, Lundin Petroleum is awarded the new Block acreage as a result of the existing Block acreage being declared a protected nature conservation area.
The CVII Block covers an area of approximately 5,545 km² and has been lightly explored. The block contains the shallow water portion of the Mamberamo delta and an undeveloped gas discovery in Pliocene turbidite reservoirs. Large carbonate build ups have also been identified on a 950 km² 3D seismic survey that was acquired in 2009. Lundin Petroleum expects to reprocess the 3D seismic survey prior to possible future drilling.
The fulfilled Sareba Block commitments are carried over to the CVII Block PSC and the remaining financial commitment for the purchase of geological and geophysical data shall be completed in year one of the PSC amendment agreement.
Lundin Petroleum operates a total of 5 Blocks in Indonesia and holds a non-operated interest in an onshore gas producing Block.
Ashley Heppenstall, President and CEO of Lundin Petroleum comments: "The signing of this amendment agreement marks a further important step forward in Lundin Petroleum's pursuit of organic growth opportunities in Indonesia and South East Asia. We are particularly encouraged by the prospectivity of the CVII Block and securing this acreage provides us with the chance to continue with our exploration activities."
Lundin Petroleum holds a 100 percent interest in the CVII Block PSC through its subsidiary Lundin Sareba BV.
Source: Lundin Petroleum AB, 2013.