Lion Energy gains Indonesia’s approval for East Seram PSC farmout

Lion Energy has received ceremonial support from the Indonesian Ministry of Energy and Mineral Resources (MEMR) for the transportation of a 15% participating involvement successful the East Seram accumulation sharing declaration (PSC) from its subsidiary Balam Energy to OPIC East Seram.

The support marks the past regulatory measurement required for the completion of the farmout agreement.

Once the farmout is completed, Balam Energy volition clasp a 45% involvement successful the East Seram PSC, portion OPIC's stock volition emergence to 55%.

Under the presumption of the agreement, OPIC volition money 88% of the costs for the upcoming Bula Karang-1 (BK-01) exploration well, up to a maximum of $5.6m.

Any expenses supra this headdress volition beryllium divided betwixt Balam Energy and OPIC successful enactment with their respective interests.

The backing operation allows Lion Energy to support important vulnerability to imaginable exploration success, portion notably reducing its aboriginal superior obligations.

The East Seram PSC holds the Bula Karang prospect, which is owed to beryllium drilled successful August 2026. Current pre-drilling activities are progressing, with the drilling squad successful place, main services secured and operation nether mode astatine the good site.

The BK-01 good volition people a Plio-Pleistocene carbonate build-up located offshore Bula Bay, accessed by a deviated good drilled from an onshore site. This attack is expected to little costs compared to offshore operations.

The imaginable is estimated to incorporate a P50 prospective assets of 12 cardinal barrels of lipid equivalent (mboe).

Lion Energy president Tom Soulsby said: "We are pleased to person ceremonial support from MEMR for the East Seram farmout. This completes the authorities support process for the transaction and represents an important milestone for the East Seram project.

"The transaction materially improves Lion's backing presumption up of the BK-01 exploration well, portion allowing the institution to clasp a important 45% involvement successful a highly charismatic exploration accidental targeting a 12mboe oilfield with entree to existing accumulation infrastructure."

Since acquiring the East Seram PSC successful 2018, Lion Energy has undertaken respective exploration activities including a 664km offshore 2D seismic survey successful 2020.

Nearby lipid infrastructure and proximity to existing fields supply further commercialisation imaginable for immoderate aboriginal discoveries.

In April 2026, Lion Energy entered into an statement with Silver City Drilling for the usage of the SCD-20 rig to drill the BK-01 exploration good successful the East Seram PSC area.

"Lion Energy gains Indonesia's support for East Seram PSC farmout" was primitively created and published by Offshore Technology, a GlobalData owned brand.