Canada’s Criterium buys stake in Bulu PSC in Indonesia for $1.6mn
Canada’s Criterium Energy on December 20 announced its entry into the southeast Asian market with the acquisition of a 42.5% interest in the Bulu production sharing contract (PSC) for $1.6mn. The Bulu PSC contains the Lengo gas field, offshore East Java Indonesia.
Criterium entered into a binding agreement with a subsidiary of Mitsui E&P Australia Holdings for the acquisition of the outstanding shares in AWE (Asia), which owns a 42.5% non-operated working interest in the Bulu PSC.
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 government of Indonesia approved the plan of development for the Lengo gas field in 2014 with the first gas anticipated in 2026-2027 and sales gas of 60 – 80mn ft3/d gross (25-30mn ft3/d net Criterium), the company said.
The Bulu PSC partners have entered into a heads of agreement (HOA) for long-term gas offtake, which is expected to progress to a binding gas sales agreement in 2023. The gas prices are expected to be in the range of US$6-$8/mn Btu.
“The acquisition of an interest in the Bulu PSC provides Criterium a strong foundation from which to execute our SE Asia growth and income business model,” CEO Robin Auld said. “This fully appraised gas resource together with encouraging progress made on the gas sales agreement sets the stage for value accretion in the short and long term.”
The Bulu PSC is located 65 km offshore East Java in water depths of approximately 50 m. The Bulu PSC contains the Lengo gas field which was discovered in 2008 by the Lengo-1 well which flow tested 12.9mn ft3/d and appraised in 2013 by the Lengo-2 well which flow tested 20.6mn ft3/d.