Lundin scraps deal to sell Bertam FPSO

  • Infrastructure

Swedish independent oil company Lundin Petroleum has canceled a deal to sell the Bertam floating production storage and offloading (FPSO) vessel to a Malaysian company.

Lundin said in January that it had entered into an agreement to sell the FPSO Bertam to M3nergy Investment Ltd (M3nergy), a wholly owned subsidiary of M3nergy Berhad of Malaysia, for a cash consideration of $265 million.

The transaction was subject to M3nergy securing financing within a certain timeframe.

Lundin said on Wednesday in its 2Q 2016 results report that, given M3nergy has been unable to secure the required financing, the agreement to sell the FPSO has been terminated.

The FPSO is operating on the Bertam field in Block PM307, offshore peninsular Malaysia, that started production in April 2015. Lundin is the operator of the field with a 75 percent working interest, with Petronas Carigali holding the remaining 25 percent working interest.

Lundin said that net production from the Bertam field during the first half of 2016 was ahead of forecast at 8,600 boepd. The Bertam field has been producing from 11 wells as of mid-October 2015 with one additional well, the A15 well, starting production in June 2016.

The company also on Wednesday posted a net loss for the 2Q 2016, compared to a profit in the year-ago quarter, as higher production was offset by foreign exchange losses.

Offshore Energy Today Staff

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