Singapore-based oil and gas company Jadestone Energy has acquired the remaining 10% stake in the Lemang production sharing contract (PSC ) onshore Indonesia.

The company acquired the stake in the Lemang PSC as part of a settlement and transfer agreement, signed in 2021, with Indonesian oil and gas field services company PT Hexindo Gemilang Jaya.

In exchange, Jadestone has paid a consideration of $500,000. It also waived Hexindo’s unpaid amounts related to the latter’s interest in the Lemang PSC.

The taxes that are included in the cash consideration will be remitted directly to the Indonesian government.

With the closing of the acquisition, Jadestone now holds a 100% stake in the Lemang PSC, which comprises the undeveloped Akatara gas field.

The Akatara gas field, which is estimated to hold 18.7 million barrels of oil equivalent of gross 2C resource, is scheduled to start production in the first half of 2024.

Jadestone Energy president and CEO Paul Blakeley said: “We have acquired Hexindo’s interest for US$0.26/boe of 2C resource, compared to the original acquisition cost of US$0.70/boe in 2020, a very attractive bolt-on deal for Jadestone, particularly given the significant commercial and development progress since the initial acquisition was announced.

“Activity at the Akatara gas development project is progressing well and we remain on track to deliver this key organic growth project for Jadestone in the first half of 2024.”

Jadestone expects the Akatara development to widen its production base and increase the share of gas in the production mix.