M3nergy Investment Ltd., a wholly owned subsidiary of M3nergy Bhd. of Malaysia, has agreed to acquire the Bertam floating production, storage, and offloading vessel from Lundin Petroleum AB for $265 million.
The two firms entered an agreement under which M3nergy will buy the 100% issued share capital of Lundin Services Ltd., owner of the FPSO. The deal is expected to close during the first quarter.
An integrated service provider to the oil and gas industry in Southeast Asia, M3nergy is a wholly owned subsidiary of Sabah Development Bank Bhd. in Malaysia, which is in turn wholly owned by the Ministry of Finance of the State of Sabah, part of the Federation of Malaysia.
Alex Schneiter, Lundin’s president and chief executive officer, explained the move from his company’s perspective, “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.”
Lundin in 2015 completed an extensive upgrade and life extension program on the FPSO, which has been operating since last spring’s production startup from Bertam field on Block PM307 offshore peninsular Malaysia (OGJ Online, Apr. 14, 2015).
Lundin operates Bertam field with 75% working interest. Petronas Carigali Sdn. Bhd. holds the remaining 25%.