Ramba Energy Completes Indonesia Farm Out
Singapore-based Ramba Energy June 12 said Indonesian oil and gas regulator SKKMigas June 5 approved its farm out of 15% stake in the Lemang block to Mandala Energy. The company owned the stake through its subsidiary Hexindo.
The participating interests in the block, located in South Sumatra, of Hexindo, Mandala and Eastwin Global Investment following the completion are 16%, 50%, and 34% respectively, Ramba Energy said.
The farm out was first announced in September 2017. Ramba then said that the purpose of the farm out is to rationalise Hexindo’s funding obligations and reduce its future capital expenditure in respect of the Lemang block. Proceeds from the farm will be applied towards funding Hexindo’s remaining participating interest share of the capital expenditure required in relation to the Lemang block, the company said last September.
According to Ramba Energy, in 2011, the block was estimated to hold prospective reserves of approximately 511mn barrels of oil and 468bn ft3 of gas. In October 2015 Mandala Energy, backed by investment firm KKR, had acquired a 35% participating stake in the Lemang block.