UK-listed Coro Enters Indonesia

London-listed Coro Energy has entered Indonesia with the acquisition of a 42.5% interest in the Lengo gas field, offshore East Java, Indonesia, for a little over $12mn, it said September 3. Lengo gas field is in the shallow water Bulu production sharing contract (PSC).

The field has independently certified gross 2C resources of 359bn ft³ of recoverable dry gas with gross 3C resources of 420bn ft³ representing additional upside, the company said. The field development plan has been approved by the Indonesian authorities. “Marketing efforts targeting the Tuban industrial complex in East Java are underway and an MOU was signed with a gas buyer earlier this year,” Coro said.  Deal results in Coro acquiring over 152bn ft³ of discovered, appraised and certified net 2C gas resources, with an upside of over 26bn ft³ of net additional gas resources.

"This first Indonesian acquisition provides Coro with a strong initial platform on which to progress our South East Asian growth strategy; it has been crucial for us to find the right asset on which to build, and being an asset with solid, proved gas resource base together with substantial technical and commercial upside, I believe this transaction delivers that,” Coro CEO James Menzies, said.

In addition to Coro, other shareholders are: operator Kris Energy (42.5%) and two local partners, Satria Energindo (10%) and Satria Wijaya Kusuma (5%).

Coro said it is stepping in to a deal that was originally agreed between AWE (Satria) NZ, a subsidiary of Australia’s AWE (the current asset holder) and HyOil Bulu, a subsidiary of Singapore’s HyOil. This current transaction is being effected through both a tripartite agreement between Coro, HyOil and AWE, (in which the original sales & purchase agreement (SPA) between HyOil and AWE is terminated); and a new SPA between Coro and AWE.

Coro, AWE and HyOil will be working together and with relevant government authorities to close these new agreements, Coro said.