Ramba Energy has struck a deal to farm-out 35 percent of its share in the Leman production-sharing contract (PSC) in Indonesia to Mandala Energy subsidiary Mandala Lemang Singapore, the company announced Monday.

Ramba Energy’s Lemang block farm-out

KUALA LUMPUR, October 5, 2015 – Ramba Energy has struck a deal to farm-out 35 percent of its share in the Leman production-sharing contract (PSC) in Indonesia to Mandala Energy subsidiary Mandala Lemang Singapore, the company announced Monday.

Mandala Energy will make a cash payment of $26.3 million with further payments to be made once certain milestones are reached. Included in the production-sharing contract are oil and gas bonuses up to $68 million and $10 million, respectively. These reserve bonuses will be made to Ramba after a reserve certificate is issued.

 

“Despite the current low-oil-price environment, this partnership validates Ramba’s overall strategy and the positive economic returns we expect from the Lemang block,” David Soeryadjaya, CEO of Ramba Energy said in a company statement.

Hexindo will maintain a 31-percent interest in the Lemang PSC, with investment company Eastwin Global Investments holding 34 percent. Located in Indonesia’s South Sumatra Basin, the Lemang block’s Selong-1 wildcat tested at 476 mcm (16.8 mcf) per day of gas and 790 barrels of oil per day.

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