Under the terms of the deal, Lundin Petroleum will sell non-operated interest in assets which have net reserves of 0.9 million barrels of oil equivalents, in Indonesia.
In particular, Lundin will sell the non-operated interest in the producing Singa gas field and the operated interests in the South Sokang and Cendrawasih VII Blocks.
The deal also includes the joint study agreement (JSA) in respect of the Cendrawasih VIII block.
Lundin has 25.8% stake in the Singa gas field, which is operated by Medco Energi, located in Lematang Block in South Sumatra.
The acquisition of is a part of Medco Energi’s plan to maximize Singa gas field production.
Medco also expects the acquired assets will boost its total gas production by 42 MMSCFD in 2015.
Medco president director and CEO Lukman Mahfoedz said: "We are expecting the government endorsement for this transaction would be given within a short time since MedcoEnergi is the operator of this block.
"We will continue to supply gas to the State-Owned Electricity Company (PLN) with a decent price."
Completion of the transaction is subject to various conditions, including the Government of Indonesia approval.
Lundin Petroleum president and CEO Alex Schneiter said: "We are pleased with the sale of our assets in Indonesia, with net reserves of 0.9 million barrels of oil equivalents.
"We remain committed to our growth strategy in South East Asia where Malaysia continues to be one of Lundin Petroleum’s core areas."
