Lundin to sell Bertam FPSO as it focuses on core business
STOCKHOLM, Sweden – Lundin Petroleum has entered into an agreement to sell the Bertam FPSO to M3nergy Investment Ltd., a wholly owned subsidiary of M3nergy Berhad of Malaysia. Lundin will receive a cash consideration of $265 million, based on a transaction effective date of Jan. 1, 2016.
Lundin Petroleum and M3nergy have entered an agreement under which Lundin will sell to M3nergy the 100% issued share capital of Lundin Services Ltd., which owns the Bertam FPSO. The agreement remains subject to certain completion conditions, including finalization of M3nergy's external financing. The transaction is expected to complete during the first quarter of 2016.
Lundin completed an extensive upgrade and life extension program on the FPSO in 2015, and it is now operating on Bertam field in Block PM307, offshore peninsular Malaysia. Bertam field commenced production in April 2015. Lundin Petroleum is the operator of the field with a 75% working interest; Petronas Carigali holds the remaining 25%.
"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," Alex Schneiter, president and CEO of Lundin Petroleum, said.
