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    Jadestone buys further 10% interest in Lemang PSC

Summary

Jadestone is acquiring the stake from PT Hexindo Gemilan

by: Joseph Murphy

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Jadestone buys further 10% interest in Lemang PSC

Asia Pacific-focused Jadestone Energy has reached a deal to buy a further 10% interest in the Lemang production sharing contract (PSC) in Indonesia, increasing its ownership to 100%, the company said on November 24.

Jadestone is acquiring the stake from PT Hexindo Gemilan. In exchange, it will waive Hexindo's unpaid contributions to the project and pay a further $500,000. The deal needs the approval of the Indonesian government.

Lemang PSC comprises the Akatara gas field, estimated to hold 18.7mn barrels of oil equivalent in 2C resources. Most of this is gas but it also contains condensate and LPG. The field is expected to provide gas for local power generation, displacing coal.

Jadestone CEO Paul Blakeley said a final investment decision on the project was still anticipated in the first half of 2022, with gas flow on track to start in the first half of 2024. The company bought a 90% interest in Lemang PSC last year.