Canada's Criterium to sell stake in Bulu PSC offshore Indonesia for $7.7mn
Canadian-based Criterium Energy has signed a letter of intent (LOI) with an undisclosed entity for the sale of its 42.5% non-operated working interest in the Bulu production sharing contract (PSC) offshore Indonesia, which includes the Lengo gas field. The deal is valued at $7.7mn, the company announced on December 14.
Under the terms of the LOI, Criterium will receive a non-refundable deposit of $2mn upon the signing of the definitive agreement. The remaining $5.75mn is expected to be due upon closing, slated for the first quarter of 2024. Criterium acquired the 42.5% stake in Bulu from Mitsui in December 2022 for $1.6mn.
The remaining 57.5% participating interest in the Bulu PSC is held by Kris Energy (42.5%) and two local partners, Satria Energindo (10%) and Satria Wijaya Kusuma (5%).
"The sale of our interest in Bulu represents a significant milestone for our company as a source of non-dilutive funding that strengthens our financial position and provides greater financial flexibility,” said Robin Auld, CEO of Criterium.
"Criterium purchased Bulu one year ago and we have worked with JV partners to define a development plan that is mutually beneficial for all parties and the value our team brought to this process is recognized in the sale announced today,” he added.
The government of Indonesia approved the plan of development for the Lengo gas field in 2014, with the commencement of the first gas anticipated in 2026-2027. The partners in the Bulu PSC have already entered into a heads of agreement for long-term gas offtake.
Situated 65 km offshore East Java in water depths of approximately 50 m, the Bulu PSC encompasses the Lengo gas field, discovered in 2008 by the Lengo-1 well, which flow tested at 12.9 million ft3/d. The field was further appraised in 2013 by the Lengo-2 well, which flow tested at 20.6 million ft3/d.