Sweden’s Lundin Petroleum has agreed on a new production sharing contract off Indonesia to replace existing acreage that has been declared a protected area.
The company said on July 30 its amended PSC now covered the Cendrawasih VII Block, a 5545-square-kilometre area off north-eastern Indonesia.
Lundin will hold a 100% interest in this new acreage, which substitutes the existing Sareba Block that has now become a protected nature conservation area.
Cendrawasih VII contains the shallow-water portion of the Mamberamo delta and an undeveloped gas discovery in Pliocene turbidite reservoirs. The block has only been lightly explored.
Lundin said it planned to reprocess data from a 950-square-kilometre 3D seismic survey which also identified local carbonate buildups.
The commitments already fulfilled on the Sareba Block have been carried over to the new PSC. The remaining financial commitment for the purchase of geological and geophysical data expected to be completed in the first year of the amended agreement.
“The signing of this amendment agreement marks a further important step forward in Lundin Petroleum’s pursuit of organic growth opportunities in Indonesia and South East Asia,” Lundin chief executive Ashley Heppenstall said in a statement on July 30.
“We are particularly encouraged by the prospectivity of the CVII Block and securing this acreage provides us with the chance to continue with our exploration activities,” he said.
Lundin operates five blocks in Indonesia and holds a non-operated stake in an onshore gas-producing block.