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    KrisEnergy to Sell Indonesian Stake to BP


KrisEnergy says its limited capital is best spent on nearer-term development.

by: Joseph Murphy

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Natural Gas & LNG News, Asia/Oceania, Corporate, Mergers & Acquisitions, Exploration & Production, News By Country, Indonesia

KrisEnergy to Sell Indonesian Stake to BP

Singapore-based KrisEnergy has agreed to divest its 30% non-operated stake in the Andaman 2 production-sharing agreement (PSA) off Indonesia to BP, it announced on November 19.

KrisEnergy reported in late October it had accepted a binding offer for the stake from a major international oil company, without revealing the bidder's identity. It has now signed a sales and purchase agreement with BP.

“The disposal comes after taking into consideration the future exploration cost and risks associated with deepwater activities,” KrisEnergy said. “The board believes it is more prudent to allocate KrisEnergy’s limited capital to funding near-term development.”

Andaman 2 lies in the North Sumatra basin, covering a 7,400-km2 area in waters 200 to 1,950 metres deep. It is operated by the UK’s Premier Oil with a 40% position, while the UAE’s Mubadala has 30%. KrisEnergy’s sale to BP is subject to approvals, including from the Indonesian government. The deal’s value was not disclosed.