Lundin signs Malaysian PSCs

Lundin Petroleum's subsidiary, Lundin Malaysia BV, today signed three new production sharing contracts (PSCs) with Petronas in Kuala Lumpur.

Offshore staff

STOCKHOLM, Sweden -- Lundin Petroleum's subsidiary, Lundin Malaysia BV, today signed three new production sharing contracts (PSCs) with Petronas in Kuala Lumpur. The PSCs cover blocks PM308A and PM308B in the Penyu basin offshore Peninsular Malaysia and block SB303, offshore Sabah.

PM308A and PM308B cover about 5,500 and 8,600 sq km (2,124 and 3,320 sq mi), respectively. PM308A contains one oil discovery, the Rhu field. Several prospects and leads have been identified in the blocks from previous 2D and 3D seismic campaigns.

Lundin Petroleum holds a 35% interest and is operator in PM308A. Nippon Oil Exploration (Peninsula Malaysia) Ltd. and Japan Energy E&P Malaysia Co. Ltd. each holds 20% interests in PM308A. Lundin Petroleum holds 75% interest and is operator in PM308B. Petronas Carigali holds the remaining 25% interest in both blocks.

Block SB303, offshore northeastern Sabah, covers 5,000 sq km (1,931 sq mi) where one gas/condensate discovery, the Titik Terang, has been found to date. Several prospects and leads have been identified from previous seismic acquisitions.

Lundin Petroleum holds a 75% interest and is operator in SB303. Petronas Carigali is a partner and holds 25%.

Further seismic acquisition and exploration drilling will be completed on all these blocks.

04/07/2008

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