Lundin Petroleum has signed a sale and purchase agreement (SPA) with PT Medco Energi Internasional TBK (Medco), to sell its oil and gas assets in Indonesia. The Indonesian assets include the non-operated interest in the producing Singa gas field and the operated interests in the South Sokang and Cendrawasih VII Blocks, as well as the joint study agreement (JSA) in respect of the Cendrawasih VIII Block.
Lundin Petroleum and Medco signed the SPA on 8 October 2015, to sell the Indonesian assets for aggregate cash consideration of USD 22 million, with an effective date of 1 October 2015. Lundin Petroleum may also become entitled to certain contingent payments and has an option to receive a future interest in the Cendrawasih Blocks. Completion of the transaction is subject to various conditions, including approval of the Government of Indonesia.