Singpore’s Jadestone Energy Inc are withdrawing from its Gulf of Bone production sharing contract (PSC) offshore Indonesia.
The firm said it is a “key” step in releasing the company from non-strategic exploration assets.
Bone PSC is operated by Mitra Energy Limited, a wholly owned subsidiary of the company, with a sixty percent (60%) working interest.
Azimuth Indonesia Limited (“Azimuth”) holds the remaining forty percent (40%) working interest.
Agreement has been reached to transfer the sixty percent (60%) working interest and operatorship to Azimuth, subject to government approval.
Jadestone Energy executive chairman, Paul Blakeley, said: “Our decision to withdraw from this PSC is in line with the Company’s new strategic focus on increasing value through production and development rather than long dated, frontier exploration.
“This withdrawal is at no cost to the company as we continue to re-shape the portfolio. The new management team’s efforts to achieve a balanced portfolio of production and development assets with additional growth from low risk exploration has already shown substantial results in our first nine months.”
Jadestone Energy is now aiming to complete the purchase of an interest in two appraised gas fields offshore Vietnam in the Nam Con Son basin and bring them on-stream in late 2019.
The company also plans to further develop its existing assets in Vietnam’s Malay Basin, the Nam Du and U Minh gas fields.