Indonesia M&A - CPC acquire an additional 15% interest in the East Seram PSC from Lion Energy

(Originally posted on January 7, 2026)

Yesterday, Lion Energy announced that they had executed a farm-out agreement with CPC for the latter to acquire an additional 15% interest in the East Seram PSC. There is no cash consideration but CPC will now fund 88% of the estimated drilling cost (capped at US $5.6 million on a 100% basis) for the Bula Karang exploration well, I make this an effective subsidization of about US $1.85 million. The deal is effective 1st October 2025 and requires government approval before completion.

In this article, we look more at the history of the asset as well as the potential returns of developing a successful discovery.