Eneco Energy (formerly Ramba Energy) announced the completion of a previously agreed farm-in deal with Mandala Energy in the Lemang PSC, located in onshore South Sumatra, in July 2019, whereby Mandala acquired an additional 6% participating interest in the block. The deal received approval from SKK Migas on 10 June 2019. Pursuant to this transaction, rightholders in the Lemang PSC are Mandala Energy (90%, operator) and Hexindo Gemilang Jaya (a majority-owned subsidiary of Eneco) (10%).  Mandala exercised the option to acquire the additional 6% interest on 1 October 2018. The option was part of the original farm-out deal signed in September 2017, by which Mandala initially acquired a 15% interest from Hexindo.  It is understood that Mandala also acquired a 34% interest from previous partner Eastwin Energy in late 2018. Mandala took over operations in the block from Hexindo in May 2017.  The block contains the Akatara field, which came onstream in November 2016. As of late 2018, the field was producing over 1,000 bo/d. The operator is planning to conduct further development activities, such as artificial lift, to increase production to 2,000 bo/d. Likewise, negotiations are ongoing to commercialize gas from the field, targeting a supply of 25 MMcfg/d to PT PGN.  Background Information  The Lemang PSC was officially awarded on 18 January 2007 to PT Hexindo Gelimang Jaya (a majority-owned subsidiary of Ramba Energy) (59%) and PT Indelberg Indonesia (41%). Firm commitments included 500 km 2D seismic acquisition, 500 sq km 3D seismic acquisition and drilling of four wells. The 2D seismic acquisition commitment was fulfilled in early June 2012 with the completion of a 550 km 2D seismic survey. This survey commenced in late September 2011 and was conducted by Quest Geophysical Asia.  Ramba Energy completed the acquisition of 41% participating interest in the PSC from Indelberg in November 2010. In late 2011, a new joint operating agreement was reached by which Eastwin Global Investments entered the block with a 49% interest, and the remaining 51% stakes were consolidated into Hexindo.  In late April 2014, Ramba Energy announced that it has commenced a process to farm-out its stake in the PSC.  In October 2015, Ramba and Mandala Energy signed a farm-out agreement by which Mandala earned a 35% interest in the block for a total investment of up to USD 179.6 million. The deal was completed in February 2016. Along with the farm-out to Mandala, Hexindo acquired a 15% interest from the other PSC partner Eastwin Global Investment such that the net effect of the agreement resulted in Mandala, Hexindo and Eastwin holding 35%, 31% and 34% stake respectively in the block.  Akatara field development  First oil production from the Akatara field in the Lemang PSC was achieved on 16 November 2016. The milestone was reached following to the issuance of the necessary forestry lease permit by Indonesian Ministry of Forestry and Environment. Initial production was expected to reach 500 bo/d from the Akatara 2 well. The operator plans to increase output with additional production from other existing wells and from new development wells drilled from 2017 onwards.  The development plan for the block includes the recompletion of exploration wells Selong 1, Akatara 1 and Akatara 2, followed by eight new development wells and two step-out wells. Production was initially achieved through temporary facilities (Early Production Facilities). In this early stage, oil is transported by truck to the Tempino field and from there is pipelined to the Plaju refinery. In a later phase, the operator plans to install permanent facilities, possibly with a higher production capacity. A new pipeline is also planned to be built, in order to connect the block directly with the Plaju refinery.  The block is expected to produce up to 4,000 bo/d during the early production phase. Commercial gas production is expected to commence at a later stage. According to local media, quoting the operator in late February 2017, the block could potentially produce approximately 10,000 bo/d by 2022 if further development activities are conducted.
 Indonesia Mandala Energy Ltd, Ramba Energy Ltd Lemang PSC - Additional 6% farm-in by Mandala, completed 