Ramba evaluates bids for Lemang block acquisition in Indonesia

Oil and gas exploration and production company Ramba Energy has commenced evaluating acquisition offers for the Lemang block in South Sumatra, Indonesia.

The Singapore-based company has appointed PT Rothschild and DMG & Partners as joint advisers to conduct a strategic review of its interest in the block.

Ramba has recently undertaken comprehensive strategic reviews of the production-sharing contract aimed at enhancing value for the company and shareholders on the Lemang block.

Following the completion of the review and due diligence process, the company has started receiving proposals from interested bidders for the purchase of a minority interest in the block.

Ramba said that it would continue to evaluate proposals with a view to select the best bid which may eventually lead to a farm-out deal for the block.

Ramba’s local subsidiary PT Hexindo Gemiland Jaya holds a 51% working interest in the Lemang PSC, which is located adjacent to the Jabung block operated by PetroChina, an already producing block with a daily output of around 53,000 barrels of oil equivalents a day.

The production sharing contract (PSC) for the Lemang block was awarded by BPMigas in 2007, and remains valid until 2037.

Sugih holds a 49% participating interest in the Lemang block (non-operator) through its subsidiary Eastwin Global Investments Ltd.