Ramba Energy to sell 25% stake in Indonesian Lemang PSC

Ramba Energy has agreed to sell its 25% interest in the Lemang oil and gas block in Indonesia to Risco Energy Investments (REI) for $157.5m.

Both companies have signed a binding letter of offer, which will allow REI to acquire a 25% direct working interest in the Lemang production sharing contract (PSC) from Ramba’s Indonesian subsidiary, PT Hexindo Gemilang Jaya.

The companies have also agreed to enter into a three-month exclusivity period, during which REI will complete a due diligence on the Lemang PSC.

REI and Ramba will also agree the scope, schedule and resourcing of the field development plan for an early partner alignment.

Ramba will secure the required regulatory and shareholder approvals for the proposed transaction.

Lemang PSC, which was signed in 2007, is situated in the northern part of the South Sumatra basin.

REI said Lemang PSC, which is located around 300km from Singapore, is ideally situated for oil and gas distribution to regional markets.

REI focuses on upstream oil and gas in ASEAN.

The company has invested in conventional oil and gas production, as well as unconventional production in the form of CBM and shale/tight sands.

REI, which has participated in more than $500m of agreements since 2010, plans to build a balanced portfolio of oil and gas producing, development and appraisal assets.