Swedish owned Lundin Petroleum AB has entered a farm-out agreement with Star Energy in which the Swedes transfers a 25 percent participating interest in the Indonesian Banyumas block to Star Energy.
As part of the agreement, Star Energy will fund the Jati-1 well costs, expected to be spudded in 2005. Lundin Petroleum will continue to be the operator of the Banyumas block during the drilling of the well.
Star Energy will take over operatorship following a commercial discovery and approval of a development plan.
After completion of this transaction, which is subject to certain conditions including Indonesian government approval, the partners in the Banyumas block will be: Lundin Petroleum 25 percent, Star Energy 50 percent and ConocoPhillips 25 percent.
