Energy World Corporation's divestment of Sengkang PSC interest

Energy World Corporation Limited (ASX:EWC) has announced the sale of its 51% participating interest in the Sengkang Production Sharing Contract (Sengkang PSC) to PT EMP Energi Jaya (Jaya) for US$35 million. The Sengkang PSC, located in Indonesia, encompasses a 2,925.2 km2 contract area and grants EWC the rights for petroleum exploration and production until 2042.

Executive commentary on the divestment

The divestment of our participating interest in the Sengkang PSC aligns with our strategic focus on optimizing our portfolio and capital allocation. This transaction allows us to realize value from our assets while maintaining our commitment to operational excellence and sustainable growth. We remain dedicated to pursuing opportunities that enhance shareholder value and strengthen our position in the energy sector.

Summary of the Sengkang PSC divestment and future agreements

Energy World Corporation's sale of its 51% interest in the Sengkang PSC to PT EMP Energi Jaya for US$35 million reflects the company's proactive approach to portfolio management and capital efficiency. The agreement includes provisions for the development and sale of natural gas sourced from the Wasambo gas field, as well as the resolution of civil disputes and criminal allegations related to the Sengkang PSC. The company anticipates the closure of the transaction on 31 October 2024 and remains focused on pursuing value-accretive opportunities in the energy sector.