Lion Energy Eyes 12 Million Barrel PP9 Prospect, Negotiates EPC for Brisbane Hydrogen
Lion Energy is making significant strides in its Port of Brisbane green hydrogen project with EPC contract negotiations underway, while gearing up for a key drilling campaign at its East Seram oil prospect in 2025.
- Port of Brisbane green hydrogen project progressing with EPC contract negotiations
- Hydrogen Information Day hosted, engaging major port tenants and government
- East Seram PSC drilling plans targeting PP9 shallow oil prospect in early 2026
- Ongoing farm-out discussions for East Seram PSC to accelerate exploration
- Seram (Non-Bula) PSC crude oil production steady; divestment negotiations ongoing
Port of Brisbane Green Hydrogen Project Gains Momentum
Lion Energy Limited has reported meaningful progress in its green hydrogen ambitions at the Port of Brisbane (PoB), a project positioned to become Southeast Queensland’s first commercial-scale green hydrogen production and distribution hub. In the first quarter of 2025, the company hosted the inaugural PoB Hydrogen Information Day, attracting key industrial tenants focused on transport and logistics, alongside government representatives. Demonstrations of hydrogen-powered vehicles and equipment underscored the practical applications of zero-emission fuel in the region.
Negotiations for the Engineering, Procurement, and Construction (EPC) contract are ongoing, with Lion and its partners aiming to finalize agreements in the second quarter. The company has expanded its list of potential hydrogen offtake partners but has paused offtake discussions pending EPC contractor selection. This methodical approach reflects Lion’s commitment to securing competitive cost estimates and ensuring project viability before advancing commercial agreements.
East Seram PSC: Drilling Plans and Farm-Out Activity
On the oil and gas front, Lion Energy’s East Seram Production Sharing Contract (PSC) remains a focal point. The company holds a 60% interest and operates the 1,300 square kilometre block, which recently received a four-year extension through to July 2028. Exploration efforts have highlighted the PP9 Prospect, a shallow reefal carbonate build-up with an unrisked P50 prospective resource estimated at 12 million barrels of oil. Importantly, the prospect can be drilled from onshore, allowing for rapid development leveraging existing infrastructure.
Well planning for the PP9 Prospect has been confirmed, with drilling targeted for early 2026. Lion has shifted its drilling and partner funding efforts towards this shallow oil play, which offers potential for early cash flow. Concurrently, farm-in discussions continue with several interested parties, indicating strong market interest in the East Seram acreage.
Seram (Non-Bula) PSC Production and Divestment Update
In the Seram (Non-Bula) PSC, where Lion holds a 2.5% interest, gross crude oil production during the quarter was 70,505 barrels, with Lion’s share amounting to 1,763 barrels. Daily production averaged 783 barrels of oil per day, with Lion’s attributable production around 20 barrels per day. The Oseil 2ST2 well was offline for the entire quarter due to pump failure but has since undergone servicing in April 2025.
Lion is in ongoing negotiations to divest a 0.25% interest in the Seram (Non-Bula) PSC, which would reduce its stake to 2.25%. The timing and finalization of this divestment remain uncertain, adding a layer of complexity to the company’s production outlook from this asset.
Balancing Traditional Hydrocarbons with Green Energy Ambitions
Lion Energy’s dual focus on advancing its green hydrogen project while maintaining active exploration and production in Indonesia illustrates a strategic balancing act. The company’s partnership with global industrial groups such as Mitsubishi Corporation’s DGA Energy Solutions and Samsung C&T for the PoB project signals strong backing for its hydrogen ambitions. Meanwhile, the East Seram PSC’s promising shallow oil prospects and ongoing farm-out activity suggest potential near-term value creation from conventional hydrocarbons.
Chairman Tom Soulsby’s commentary highlights a cautious but optimistic outlook, emphasizing the importance of securing competitive EPC bids before progressing offtake agreements and the anticipation of a drilling announcement by Q3 2025. This measured approach reflects the challenges and opportunities inherent in transitioning energy portfolios.
Bottom Line?
Lion Energy’s next pivotal moves on EPC contracts and East Seram drilling will be critical to validating its hybrid energy strategy.
Questions in the middle?
- Which EPC contractor will Lion select for the Port of Brisbane hydrogen facility, and at what cost?
- What are the detailed economics and risk factors for the PP9 Prospect drilling planned in early 2026?
- How will the pending divestment in Seram (Non-Bula) PSC affect Lion’s production and cash flow profile?