CITIC Resources Holdings Limited: Update on Legal Proceedings Concerning Seram Block
Key Points for Investors
- Legal Proceedings Update: CITIC Resources Holdings Limited (“the Company”) has provided an important update on the ongoing legal proceeding related to the Seram Block, a significant oil asset operated by its indirect wholly-owned subsidiary, Seram Energy Limited (“Seram Energy”).
- Decision Not to Appeal: After careful consideration and legal advice, the Company has decided not to appeal the judgment of the Supreme Administrative Court (SAC) concerning its dispute with SKK Migas, the Indonesian upstream oil and gas regulator.
- Operatorship Reaffirmed: In a letter dated 7 October 2025, SKK Migas reaffirmed Seram Energy’s position as the operator of the Seram Block, with a mandate to increase oil production in line with predetermined targets and to implement the approved work programme and budget for 2026.
- Performance Review Pending: SKK Migas will review the performance and operatorship situation of the Seram Block after 31 December 2026, meaning the Company’s operational control is secure for now but subject to future reassessment.
- Focus on Operations: The Board has determined that management’s resources are best directed towards maximizing operational efficiency and value at Seram Block, in cooperation with SKK Migas and other stakeholders, rather than pursuing further legal action.
- Continued Communication: Seram Energy will continue to communicate with SKK Migas regarding its rights and obligations under applicable laws and contractual agreements.
What Shareholders Need to Know
- Price-Sensitive Developments: The decision not to appeal the SAC judgment removes legal uncertainty in the short term and allows Seram Energy to focus on increasing production at Seram Block, which is a key revenue-generating asset for the Group. This could positively impact the Company’s performance and share value if production targets are met or exceeded.
- Risk of Future Uncertainty: There remains a risk that, following the review after 31 December 2026, SKK Migas could reconsider the operatorship arrangement. This could affect the Company’s long-term control over the Seram Block and future cash flows.
- Ongoing Disclosure: The Company has committed to keeping shareholders and potential investors informed of any material developments by way of further announcements, in accordance with the Listing Rules, ensuring transparency regarding this key asset.
- Caution Urged: The Company advises shareholders and potential investors to exercise caution when dealing in its securities, given the ongoing developments and the upcoming performance review of Seram Block.
Detailed Summary
CITIC Resources Holdings Limited announced that, following its previously disclosed legal proceedings initiated by Seram Energy Limited against SKK Migas (the upstream oil and gas regulator of Indonesia) concerning the Seram Block, the Board has resolved not to pursue an appeal against the Supreme Administrative Court’s judgment. The Company encourages stakeholders to refer to its prior announcement for more details on the SAC ruling.
Importantly, SKK Migas, via correspondence dated 7 October 2025, has reaffirmed Seram Energy’s status as operator of the Seram Block and assigned it the responsibility to increase production according to set targets and to implement the agreed work plan and budget for 2026. SKK Migas also stated that the performance of the Seram Block and its operatorship would be reviewed after 31 December 2026.
The Board believes that, although there were valid grounds for Seram Energy’s legal claim, the most effective use of management’s efforts and resources is to focus on operational excellence and to work in partnership with SKK Migas and other stakeholders to maximize the value of Seram Block. Seram Energy will continue to engage with SKK Migas regarding its rights and duties under the applicable laws and contracts, seeking to protect and enhance the value of this core asset.
The Company will provide further updates to shareholders and investors as material developments occur, in accordance with its obligations under the Hong Kong Listing Rules.
Board and Governance
The announcement was authorized by the Board of CITIC Resources Holdings Limited, which comprises executive, non-executive, and independent non-executive directors.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information is based on public disclosures by CITIC Resources Holdings Limited as of 26 February 2026. Investors should exercise caution and seek professional advice before making any investment decisions related to the Company.
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