EnQuest signs production sharing contracts in Indonesia

(Sharecast News) - EnQuest announced Tuesday that it has signed production sharing contracts with the Indonesian government and joint venture partners for the Gaea and Gaea II exploration blocks in Papua Barat, marking its entry into Indonesia. Under the agreements, EnQuest said it would hold a 40% operating interest in the blocks, with the Tangguh Joint Venture holding 40% and PT Agra Energi Indonesia the remaining 20%.

The London-listed firm said the blocks, located near the BP-operated Tangguh LNG facility, were estimated by Indonesia's Ministry of Energy and Mineral Resources to hold more than 100 trillion standard cubic feet (Tscf) of unrisked resource potential.

"We are very proud to have been selected as the operating partner on the Gaea and Gaea II PSC blocks," said chief executive Amjad Bseisu.

"This award is a testament to the trust the Indonesian government has placed in EnQuest, and we are committed to working with the Tangguh Joint Venture and PT Agra Energi Indonesia to unlock the full potential of these blocks."

EnQuest said the contracts could add significant upside to its South East Asia portfolio, from which it expected to deliver more than 35,000 barrels of oil equivalent per day by 2030.

Further updates on the projects would be provided alongside its half-year results on 24 September, the board said.

At 1027 BST, shares in EnQuest were up 1.88% at 12.98p.

Reporting by Josh White for Sharecast.com.