Lundin Petroleum acquires interest in block offshore Malaysia

Lundin Malaysia BV, a wholly owned unit of Lundin Petroleum AB, has entered into agreements to acquire 50% interest in PM328, and operatorship of the block, from Petronas Carigali. The effective date of the transaction Aug. 31.

PM328 lies offshore Malaysia, northeast of PM307, which is also operated by Lundin Malaysia. PM328 covers an area of 5,600 sq km.

The initial production-sharing contract term is for 3 years. Within the first 18 months, Lundin Malaysia has committed to undertake the acquisition of 600 sq km of 3D seismic. Lundin Malaysia then has the option to commit to drilling one well in the remaining 18 months, or elect to hand back its interests to Petronas without penalty.

The remaining interest in the block will be held by Petronas (40%) and E&P Malaysia Venture Sdn. Bhd. (10%).