Swedish exploration and production firm Lundin Petroleum is to sell the floating production vessel Bertam to Malaysian state-backed M3nergy for US$265 million.
The deal, expected to complete in Q1, is subject to certain completion conditions, including finalization of M3nergy's external financing.
Lundin Petroleum completed an extensive upgrade and life extension program on the FPSO Bertam in 2015 and it is now operating on the Bertam field in Block PM307, offshore Malaysia.
The Bertam field started production in April 2015. Lundin is operator with 75% working interest, with Petronas Carigali holding the remaining 25%.
M3nergy is a wholly owned subsidiary of the Sabah Development Bank Berhad in Malaysia, which is in turn wholly owned by the Ministry of Finance of the State of Sabah, part of Federation of Malaysia. M3nergy Berhad is an integrated service provider to the oil and gas industry in South East Asia.
Alex Schneiter, President and CEO of Lundin, says: "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."
