Sweden’s Lundin becomes operator of Malaysian offshore block

Swedish oil company Lundin Petroleum has acquired a 50 percent interest in PM328, and operatorship of the block, offshore Malaysia, from PETRONAS Carigali.

The effective date of the transaction is 31st August 2014. PM328 is located offshore Malaysia, north east of PM307 which is also operated by Lundin Malaysia. PM328 covers an area of 5,600 square kilometres.

The initial PSC term is for 3 years; within the first 18 months Lundin Malaysia has committed to undertake the acquisition of 600 square kilometres 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 Carigali without penalty.

The remaining interest in the block will be held by PETRONAS Carigali 40 percent and E&P Malaysia Venture Sdn Bhd 10 percent.