Lundin Petroleum to sell FPSO Bertam

Lundin Petroleum AB has entered into a contract to sell the FPSO Bertam to M3nergy Investment Ltd. M3nergy Investment Ltd is a wholly owned subsidiary of M3nergy Berhad of Malaysia. Lundin Petroleum will receive a cash consideration of US$265 million, based on a transaction effective date of 1 January 2016.

The companies have entered an agreement under which Lundin Petroleum will sell to M3nergy the 100% issued share capital of Lundin Services Ltd, which owns the FPSO Bertam. The agreement remains subject to certain completion conditions, including finalisation of M3nergy's external financing. The transaction is expected to complete during 1Q16.

Lundin Petroleum completed an extensive upgrade and life extension programme on the FPSO Bertam in 2015 and the FPSO is now operating on the Bertam field in Block PM307, offshore peninsular Malaysia. The Bertam field commenced production in April 2015. Lundin Petroleum is the operator of the Bertam field with a 75% working interest, with Petronas Carigali holding the remaining 25% working interest.

Alex Schneiter, President and Chief Executive Officer of Lundin Petroleum, remarked: "We are very pleased to be doing this deal with M3nergy, an experienced Malaysian FPSO owner. Owning infrastructure assets is not part of Lundin Petroleum's core strategy and this transaction will allow us to redeploy this capital into other areas of our business to fund our value driven growth."

Edited from press release by Angharad Lock

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/22012016/lundin-petroleum-sells-fpso-bertam-1957/