Australia's Lion Energy has been awarded a 100 per cent participating interest in the East Seram Block in Indonesia’s North Seram basin.
The East Seram block is located in the northern part of Seram area, both offshore and onshore of Seram Island, in Eastern Indonesia. The block has an area of approximately 6,500 square kilometers.
The block was offered under Indonesia’s Direct Proposal First Bidding Round of 2018 and was announced by Ignasius Jonan the Indonesian Minister for Energy and Mineral Resources.
Jonan said that the East Seram Block was awarded under a Gross Split Production Sharing Contract (GS PSC), the commercial terms of which are to be finalised prior to execution of the contract between the Company and the Indonesian government.
The basin remains underexplored despite activity in the Bula, Oseil and Lofin areas. Approximately 43 exploration wells mainly drilled onshore, have resulted in 10 discoveries, including the Bula oilfield, Oseil and Nief Utara oil fields, and the recently discovered Lofin gas field.
The award of the East Seram Block is the result of a Joint Study application by the Company and the completion of the Joint Study in March 2017.
Lion’s CEO Tom Soulsby noted: “This working area provides synergy with Lion’s interest in the revenue generating Seram (Non Bula) Block PSC (SNBB), with the area having delivered significant discoveries and current production. The significant infrastructure established in the SNBB to serve the current production can likely be harnessed to fast track new discoveries in the East Seram Block to production. This is a major development for the Company in its future planning and growth.”