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Salamander takes stakes in two blocks



By Amanda Battersby 

Salamander Energy is beefing up its portfolio with the acquisition of stakes in two producing blocks off Indonesia.

The upstream independent is taking 2.5% equity apiece in CNOOC’s Southeast Sumatra production sharing contract and BP’s Offshore North West Java block, with both stakes coming from Citigroup. The acquisition brings combined output of 3300 barrels of oil equivalent per day to Salamander and boosts its proven and probable reserves by some 12.5 million boe.

Terms of the deal were not disclosed but it represents “a small proportion” of the additional $75 million, which the company raised through a recent funding exercise. The acquisition is scheduled to close on 7 February.

With plenty of cash now in the bank, Salamander is targeting more south-east Asian assets – “particularly E&A-style opportunities”, Upstream was told - from its new regional base in Singapore. The company already holds a 9.5% stake in Amerada Hess’ Phu Horm gas field development onshore Thailand that is due onstream later this year and a 27.2% interest in the surrounding exploration acreage.


Friday, 03 February, 2006, 05:56 GMT  | last updated: Friday, 03 February, 2006, 05:56 GMT

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