Singapore-based independent oil and gas company Jadestone Energy has completed the acquisition of the remaining 10% stake in the Lemang production sharing contract (PSC) onshore Indonesia.
The company acquired the remaining stake in Lemang through the execution of a settlement and transfer agreement with PT Hexindo Gemilang Jaya, signed in November last year.
Jadestone takes full control of Lemang project. (Credit: WORKSITE Ltd. on Unsplash)
Hexindo Gemilang Jaya is an Indonesia-based oil and gas field services company that offers performance and information technology consulting, and construction services.
In exchange for the 10% stake, Jadestone has paid a consideration of $500,000 and waived off Hexindo’s unpaid amounts relating to interest in the Lemang PSC.
The cash consideration includes taxes that will be remitted directly to the Indonesian government.
With the closing of the acquisition, Jadestone now becomes the 100% owner of the Lemang project.
Jadestone Energy president and CEO Paul Blakeley said: “We have acquired Hexindo’s interest for US$0.26/boe of 2C resource, compared to the original acquisition cost of US$0.70/boe in 2020, a very attractive bolt-on deal for Jadestone.
“Activity at the Akatara gas development project is progressing well and we remain on track to deliver this key organic growth project for Jadestone in the first half of 2024.”
The Lemang PSC contains the undeveloped but fully appraised, Akatara gas field, which is estimated to hold 18.7mmboe of gross 2C resource.
The field reached a final investment decision in June this year and its production remains on track for the first half of 2024.
It is being developed to replace coal in local gas-fired power generation, along with condensate sales and LPG for local residential use.
Once operational, the Akatara development is expected to widen Jadestone’s production base, increase the share of gas in the production mix and reduce its emissions.
In December last year, Jadestone signed a gas sales agreement (GSA) with Pelayanan Listrik Nasional Batam to sell gas from the Akatara field at a price of $5.60 per mmBtu.