Singapore’s oil and gas company KrisEnergy has completed the sale of its participating interest in the Andaman II PSC located in the Malacca Strait, offshore Indonesia, to BP.
In late October 2019, KrisEnergy said it had accepted a binding letter of offer by an unnamed ‘major international oil and gas company’ for the disposal of its 30 per cent non-operated working interest in the Andaman II production sharing contract.
Come November 2019 and KrisEnergy revealed it had entered into a conditional sale and purchase agreement with BP for the disposal, subject to obtaining all necessary approvals including from the Government of Indonesia for the assignment of the working interest.
The disposal was completed on Wednesday, 8 April 2020, according to KrisEnergy’s statement on the same day.
The consideration for the disposal is $15 million, subject to a retention sum of $1.7 million which may be used by the buyer to offset against any payment obligations that may become due by the seller from the completion date until 31 December 2021.
Pursuant to the terms of the group’s revolving credit facility with DBS Bank, the proceeds from the disposal will be held in a collection account over which DBS has security.
The Andaman II PSC is an exploration block over the North Sumatra Basin covering an area of 7,400 sq. km. Premier Oil is the operator of the Andaman II PSC and Mubadala Petroleum is one of the partners.