Lundin Petroleum AB has agreed to sell its oil and gas assets in Indonesia to PT Medco Energi Internasional TBK (Medco) for $22 million, Lundin said Oct. 9 in a news release.

The two companies signed a sales and purchase agreement on Oct. 8.

The assets include the non-operated interest in the producing Singa gas field and the operated interests in the South Sokang and Cendrawasih VII blocks, as well as the joint study agreement concerning the Cendrawasih VIII Block, the release said. Lundin also may become entitled to certain contingent payments and has an option to receive a future interest in the Cendrawasih blocks

The agreement has an Oct. 1 effective date. Completion of the transaction is subject to various conditions, including approval of the government of Indonesia.

“We are pleased with the sale of our assets in Indonesia, with net reserves of 0.9 million barrels of oil equivalents,” Lundin Petroleum President and CEO Alex Schneiter said. “We remain committed to our growth strategy in Southeast Asia where Malaysia continues to be one of Lundin Petroleum's core areas.”

Lundin Petroleum holds a 25.8824 percent participating interest in the Singa gas field, a 100 percent participating interest in the Cendrawasih VII Block, a 100 percent interest in the Cendrawasih VIII Block and a 60 percent participating interest in the South Sokang Block, the release said.