SINGAPORE – KrisEnergy Ltd. has accepted a binding letter of offer by an unnamed major international oil and gas company to sell its 30% non-operated working interest in the Andaman II production-sharing contract (PSC) in the Malacca Strait, offshore Indonesia.
Completion of the transaction is subject to obtaining all necessary approvals from the government of Indonesia for the assignment of the working interest. The long stop date is March 31, 2020.
The terms set out in the letter of offer are subject to certain assumptions and the execution and delivery of a definitive sale and purchase agreement.
The Andaman II PSC is a 7,400-sq km (2,857-sq mi) block over the North Sumatra basin. Operator Premier Oil has 40% interest, and Mubadala Petroleum holds 30%.
KrisEnergy said the sell is in line with its intention to reduce future exposure to exploration capex and strategy to focus its limited financial resources on optimizing operations at its producing assets in Bangladesh and the Gulf of Thailand and progressing the development of the Apsara oil field in block A offshore Cambodia.