Santos Ltd., Adelaide, completed the acquisition of half of Sydney-based AWE Ltd.’s participating interest in the Northwest Natuna PSC in Indonesia for $188 million.
Indonesian Ministry of Energy and Mineral Resources and the country’s regulator SKK Migas have approved the sale of the 50% interest and the transfer of operatorship to Santos.
The PSC contains the 101-million bbl Ande Ande Lumut oil project.
AWE acquired 100% of the PSC in February 2012 for $39 million plus $100 million in debt. The sale funds will be used to retire debt and produce a net cash position along with a stronger balance sheet, AWE said.
Apart from the proven K-Sand reservoir at Ande Ande, AWE has already identified further opportunities in the field’s deeper G-Sand reservoir as well as a number of exploration prospects within the PSC.
Sale proceeds will enable AWE to comfortably fund its planned exploration programs from operating cash flow and pursue further growth opportunities in the region.