Lundin Petroleum has agreed a production sharing deal in Indonesia after a previous acreage it had been awarded was declared a conservation area.
The oil firm will share the Centrawasih VII block, off the north east coast of the country, with SKKMigas.
The move comes after the company’s stake in the Sareba block became unavailable after it was declared a protected nature area.
“The signing of this amendment agreement marks a further important step forward in Lundin Petroleum’s pursuit of organic growth opportunities in Indonesia and South East Asia,” said Lundin chief executive Ashley Heppenstall.
“We are particularly encouraged by the prospectivity of the CVII Block and securing this acreage provides us with the chance to continue with our exploration activities.”
The new block, covering around 5,545 km², has so far been only lightly explored with large carbonate build-ups found during a seismic scan four years ago. Lundin is to reprocess the survey ahead of future drilling.
The company operates five blocks in Indonesia, along with a non-operated interest on an onshore gas block.