Lundin is to take a non-cash impairment charge of US$632 million after deciding to take some 170 MMboe contingent resources in Malaysia and the Caspian Sea off its books.
The Sweden-headquartered explorer said it was removing the resources, which include discoveries, from its books because "management considers it unlikely that any of these discoveries can be commercialized within a reasonable timeframe."
The resources include gas discoveries in the Sabah region, offshore East Malaysia, and the Tembakau gas discovery, in PM307, offshore Peninsular Malaysia, as well as the Morskaya oil discovery, in the Russian Caspian Sea.
The net contingent resource write down in Malaysia amounts to 60.6 MMboe and the net contingent resource write down in the Morskaya oil discovery amounts to 110.1 MMboe, says Lundin.
The non-cash impairment will be reduced by a tax credit of $83 million, resulting in a negative impact on Q4 results of $549 million.
