Australian explorer AWE has agreed to sell its 42.5% interest in the Bulu production sharing contract, offshore east Java, to a 100% owned subsidiary of HyOil for up to A$27.5 million (US$20.6 million), subject to Indonesian government approval and future development.
The Bulu PSC includes the undeveloped Lengo gas project. David Biggs, AWE’s Managing Director and CEO, said the company continues to deliver on its strategy of divesting non-core assets in order to recycle capital into high value growth projects, such as the Waitsia gas project onshore Western Australia."
Offshore Indonesia
Briggs says, offshore Indonesia, AWE is focused on progressing the Ande Ande Lumut (AAL) oil project, in the Northwest Natuna Sea, estimated to contain 101 MMbbls gross recoverable oil, net 24.3 MMbbls to AWE. This project will provide AWE with exposure to any rise in oil prices, says Briggs.
The joint venture on AAL is planning to drill an appraisal well on the underlying G-sand reservoir before the end of the current financial year, which has the potential to increase the AAL project’s total gross recoverable oil by a further 30-40 MMbbls, adds AWE.
Participants in the Bulu PSC are AWE (via subsidiaries) 42.5%, KrisEnergy (via subsidiaries) (Operator) 42.5%, PT. Satria Energindo 10.00%, and PT. Satria Wijayakusuma 5% .