Ophir Energy secures four contracts in Indonesia

Oil and gas explorer Ophir Energy has reached an agreement to acquire four production sharing contracts in Indonesia from Niko Resources.

The group said the deals cover the West Papua IV, Aru, Kofiau and Halmahera-Kofiau deepwater sites in Indonesia, adding it was in the process to secure two further contracts from Niko, covering the North Makassar Strait and North Ganal area.

The FTSE 250 company said it will conduct operations in Indonesia from a new office in Jakarta, which it acquired following its takeover of sector peer Salamander Energy.

"The acquisition of these highly prospective deepwater production sharing contracts continues the build-out of our operations in South East Asia," said group chief executive Nick Cooper.

"The combination and rationalisation of the former Salamander and Niko operations in Indonesia will provide additional cost synergies to those that we reported as part of the Salamander acquisition."

Ophir Energy shares were down 0.78% to 165.30p at 09:17 on Tuesday.