Lundin Petroleum said Wednesday that its wholly owned subsidiary, Lundin Malaysia BV, has signed a new production sharing contract (PSC) with PETRONAS covering block PM319, offshore Peninsular Malaysia.
Block PM319 covers an area of approximately 8,400 km2 and is located west of Block PM307 where Lundin Petroleum and PETRONAS Carigali have achieved success during 2012 with the appraisal of the Bertam oil field and the discovery of gas with the Tembakau-1 well.
The area has very limited 3D coverage and work commitments include a full tensor gravity survey, 550 km2 of 3D seismic and one wildcat exploration well. A number of leads have been identified on 2D seismic data.
Lundin Petroleum now operates a total of seven Blocks in Malaysia focused in two core areas. The Peninsula Malaysia core area consists of PM307, PM308A, PM308B and PM319 which are contiguous. The Sabah core area consists of SB303, SB307 and SB308 which are also contiguous blocks.
Ashley Heppenstall, President and CEO of Lundin Petroleum comments:”The signing of this Block expands our Peninsular Malaysia core area significantly where we are aiming to apply our regional technical understanding to replicate recent exploration success that has seen us drill three discoveries from five wells in this core area”
Lundin Petroleum holds an 85 percent interest in PM319 through its subsidiary Lundin Malaysia BV. Lundin Malaysia BV’s partner is PETRONAS Carigali Sdn Bhd with a 15 percent interest.