AWE acquires Indonesian offshore assets
AWE Limited has executed a sale and purchase agreement with a Genting Berhad subsidiary to acquire a 100% interest and operatorship in two production sharing contracts offshore Indonesia for $39m.
Under the terms of the agreement, a wholly owned subsidiary of AWE will acquire assets that include an undeveloped oilfield with an estimated 76 million barrels of recoverable oil.
The North West Natuna PSC and the Anambas PSC are located in the Natuna Sea in 70-90m of water. The North West Natuna PSC is an undeveloped field containing three exploration and appraisal wells. The transaction is effective from 1 January 2012 and is anticipated to be complete by February 2012.
The purchase will be funded from cash reserves and from the proceeds of the sale of part of AWE's interest in the BassGas Project. AWE has an A$150m loan facility available to meet any short-term funding requirements.
The current acquisition is in line with AWE's selective exploration and acquisition strategy to grow the company's business in Australia, New Zealand and Asia.
Tags: natuna acquire north contracts acquisition anambas production undeveloped sharing agreement