By OGJ editors
HOUSTON, June 14 -- Serica Energy PLC, Calgary, has agreed to sell its 10% interest in the Lematang production sharing contract in South Sumatra to partner Lundin Petroleum AB, Stockholm, for $5 million.
The transaction will give Lundin Petroleum 25.8824% interest in the block. Operator PT Medco Energi International Terbuka, Jakarta, holds 74.1176% (OGJ, July 12, 2004, p. 40).
Singa gas field, with gross reserves of 125.4 bcf on the Lematang block, is expected to come on stream in 2008 with an expected sales gas production plateau of 50 MMcfd. The field licensees have an agreement to sell gas to Indonesian state gas distribution company PT Perusahaan Gas Negara. Gas will be exported through the projected South Sumatra-West Java gas pipeline, which is expected to be completed this summer (OGJ, Apr. 17, 2006, p. 28).