Criterium pens binding SPA for Bulu PSC stake sale
Canada-based Criterium Energy has signed a binding sale and purchase agreement to sell its 42.5% non-operated working interest in the Bulu production sharing contract (PSC) in Indonesia for $7.75mn, it said on May 21. The Bulu PSC includes the Lengo gas field.
The company initially signed a letter of intent for the sale with an undisclosed entity in December 2023. Criterium acquired the 42.5% stake in Bulu from Mitsui in December 2022 for $1.6mn.
Criterium Energy stated that this transaction will streamline their portfolio, providing a non-dilutive capital injection. This capital can be redirected towards higher impact projects and will also strengthen the company’s financial position, it added.
The remaining 57.5% 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 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 12.9mn ft3/d. The field was further appraised in 2013 by the Lengo-2 well, which flow tested at 20.6mn ft3/d.