Ramba Energy sell shares in oil project to Mandala Energy

Mandala Energy bought a 35% per cent stake in the Lemang Production Sharing Contract (Lemang PSC) of Ramba Energy’s subsidiary, PT Hexindo Gemilang Jaya. The shares cost around US$179.6 million.

Under another concurrent agreement, Hexindo shall acquire 15% of Lemang PSC from Eastwin (which currently owns 49% participating interest in Lemang PSC) such that the net effect of these transactions would result in Mandala, Hexindo and Eastwin holding 35%, 31% and 34% participating interest respectively in Lemang PSC.

Mandala is a South East Asia-focused oil and gas exploration and production company backed by leading global investment firm KKR.

“Mandala’s decision to select Indonesia as the location of its first transaction greatly underscores our view of Indonesia as a desirable investment destination. Mandala and Ramba’s collaboration is a unique coming-together of two partners with complementary skillsets, which we both look forward to leveraging. Despite the current low-oil-price environment, this partnership validates Ramba’s overall strategy and the positive economic returns we expect from the Lemang block. We look forward to a long-term partnership which goes beyond just Lemang,” said David Soeryadjaya, CEO of Ramba.

“For Mandala Energy, this marks an excellent first step in building our South East Asia portfolio. Combining Ramba’s local relationships and knowledge with Mandala’s technical and operational strengths will provide an ideal platform for securing early production whilst pursuing significant upside potential in the Lemang project,” said Barry O’Donnell, CEO of Mandala.