Lion Energy Limited sells a 40% participating interest / PI ownership to the Taiwanese oil and gas company, CPC Corporation. Lion Energy obtained the management rights of the East Seram Block after winning the auction last year.
Lion Energy Taiwan
In its official statement, Lion Energy revealed that the transfer of PI was carried out through its subsidiary Balam Energy Pte Ltd to CPC Corporation's subsidiary, OPIC East Seram Corporation (OESC). Both have signed a share release agreement (Farm Out Agreement / FOA) on 25 September 2019.
Based on the FOA, OESC agreed to pay 80% of the costs incurred related to the East Seram Block PSC production sharing contract until August, or around US $ 940 thousand depending on the audit results. The Taiwanese oil and gas company will also replace 40% of the performance bond guarantee of US $ 150 thousand. CPC will also fund 80% of seismic costs which reached US $ 8.5 million which is part of the work commitment.
Meanwhile, if the cost exceeds this number, it will be divided based on the amount of ownership. Other funding that CPC must fund is 40% of joint venture costs starting September 1 under a Joint Operating Agreement (JOA) and 20% of well drilling costs as a follow-up to exploration well drilling.
Currently, Lion Energy holds a 100% stake in the East Seram Block. After the transaction occurs, Balam Energy will hold a PI of 60% and OPIC East Seram 40%. However, the completion of this transaction is still awaiting the execution of the JOA and approval from the Government of Indonesia.
Lion Energy Executive Chairman Tom Soulsby said, this agreement shows Lion's strategy to focus on significant potential in the Seram region that has been proven but has not yet been fully explored. Specifically, this agreement will support the development of the East Seram Block which has a prospective resource of 1.24 billion barrels of oil equivalent. At present, it has made good progress in planning seismic surveys for delineation of key points.
"And this funding arrangement and partnership with OESC will enable us to carry out the first seismic phase before mid-2020," he said in his official statement.
Lion Energy plans to carry out a 500 kilometer 2D seismic survey in 2020. This seismic survey will reach the high potential prospects and points identified in the East Seram Block. Planning this survey has been going well. Lion is optimistic that this survey will produce locations that are ready to be drilled.
In its official statement, CPC Corporation stated that with the acquisition of shares in the East Seram Block, the oil and gas company will again manage exploration blocks in Indonesia. The company will carry out exploration activities in the Seram Block after the signing of the JOA.
CPC itself has operated in upstream oil and gas Indonesia for 61 years. The East Seram Block contract was signed on July 17, 2018. At that time, Lion Energy Ltd promised a definite commitment of US $ 900 thousand and a signature bonus of US $ 500 thousand. The activities that will be carried out are G&G exploration and seismic data acquisition.
IN INDONESIA
Lion Energy Lepas 40% Saham Blok East Seram
Lion Energy Limited menjual sebagian kepemilikan participating interest/PI sebesar 40% kepada perusahaan migas Taiwan, CPC Corporation. Lion Energy memperoleh hak pengelolaan Blok East Seram setelah memenangkan lelang pada tahun lalu.
Dalam keterangan resminya, Lion Energy mengungkapkan pengalihan PI ini dilakukan melalui anak usahanya Balam Energy Pte Ltd ke anak usaha CPC Corporation, OPIC East Seram Corporation (OESC). Keduanya telah menandatangani kesepakatan pelepasan saham (Farm Out Agreement/FOA) pada 25 September 2019 lalu.
Berdasarkan FOA tersebut, OESC sepakat untuk membayar 80% biaya yang telah dikeluarkan terkait production sharing contract/PSC Blok East Seram hingga Agustus atau sekitar US$ 940 ribu tergantung hasil audit. Perusahaan migas Taiwan itu juga akan mengganti 40% dari jaminan performance bond sebesar US$ 150 ribu. CPC juga akan mendanai 80% biaya seismik yang mencapai US$ 8,5 juta yang merupakan bagian dari komitmen kerja.
Sementara jika biayanya melebihi angka tersebut, maka akan dibagi berdasarkan besaran kepemilikan. Pembiayaan lain yang harus didanai CPC adalah 40% biaya perusahaan patungan mulai 1 September di bawah kesepakatan operasi bersama (Joint Operating Agreement/JOA) dan 20% dari biaya pengeboran sumur sebagai tindak lanjut pengeboran sumur eksplorasi.
Saat ini, Lion Energy memegang 100% saham Blok East Seram. Setelah transaksi terjadi, maka Balam Energy akan memegang PI 60% dan OPIC East Seram 40%. Namun, penyelesaian transaksi ini masih menunggu eksekusi JOA dan persetujuan dari Pemerintah Indonesia.
Executive Chairman Lion Energy Tom Soulsby menuturkan, kesepakatan ini menunjukkan strategi Lion untuk fokus pada potensi signifikan di wilayah Seram yang telah terbukti namun belum sepenuhnya dieksplorasi. Khususnya, kesepakatan ini akan mendukung pengembangan Blok East Seram yang memiliki sumber daya prospektif 1,24 miliar barel setara minyak. Saat ini, pihaknya telah membuat kemajuan yang cukup bagus dalam perencanaan survei seismik untuk deliniasi titik-titik kunci.
“Dan pengaturan pendanaan dan kemitraan dengan OESC ini akan membuat kami bisa melaksanakan tahap pertama seismik sebelum pertengahan 2020,” tutur dia dalam keterangan resminya.
Lion Energy berencana melakukan kegiatan survei seismik 2D sepanjang 500 kilometer pada 2020. Survei seismik ini akan menjangkau prospek-prospek dan titik-titik (leads) berpotensi tinggi yang telah teridentifikasi di Blok East Seram. Perencanaan survei ini telah berjalan baik. Lion optimis survei ini akan menghasilkan lokasi-lokasi yang siap dibor.
Dalam keterangan resminya, CPC Corporation menyatakan bahwa dengan akuisisi saham di Blok East Seram, maka perusahaan migas itu kembali mengelola blok eksplorasi di Indonesia. Perusahaan akan melaksanakan kegiatan eksplorasi di Blok Seram pasca penandatanganan JOA.
CPC sendiri telah beroperasi di hulu migas Indonesia selama 61 tahun. Kontrak Blok East Seram diteken pada 17 Juli 2018. Pada saat itu, Lion Energy Ltd menjanjikan komitmen pasti US$ 900 ribu dan bonus tanda tangan US$ 500 ribu. Kegiatan yang bakal dilakukan yakni eksplorasi G&G dan akuisisi data seismik.
Investor Daily, Page-9, Saturday, Nov 16, 2019
