Lundin Petroleum subsidiary, Lundin Sareba BV, and Indonesia's SKKMigas entered into a production sharing contract (PSC) for for 100% interest in the Cendrawasih VII (CVII), off northeastern Indonesia.
The block is a subsitute for Lundin's existing Sareba acreage due to Sareba being declared a protected nature conservation area.
The CVII block covers an area of approximately 5,545sq km and has been lightly explored, Lundin said. 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 950sq km 3D seismic survey that was acquired in 2009. Lundin Petroleum said it expects to reprocess the 3D seismic survey prior to any future drilling campaigns.
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 said.
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