Lundin wants new partner to on Malaysia-Viet Nam block


Lundin Oil AB, Stockholdm, said it plans to sell part of its interest in Block PM-3 CAA in the jointly administered Commercial Arrangement Area in the South China Sea between Malaysia and Viet Nam.


Lundin Oil AB, Stockholdm, said it plans to sell part of its interest in Block PM-3 CAA in the jointly administered Commercial Arrangement Area in the South China Sea between Malaysia and Viet Nam.

A select group of companies will be invited to bid for a minority interest. The winner of the competitive bid process should be declared within 6 months. The process will be managed by Resource Investment Strategy Consultants of Perth.

"We believe that by bringing in a strong partner�we significantly reduce any financing risk associated with the project while maintaining our strategic presence in this important growth area," said Ian Lundin, president of Lundin Oil.

In February, it was announced that partners in Block PM-3 CAA signed a 20-year, 250 MMcfd gas supply agreement with Malaysian state firm Petronas and Viet Nam state oil firm PetroVietnam (OGJ, Feb. 21, 2000, p. 34). First gas production is expected in second half 2003.

Operator Lundin holds 41.44% of the block through subsidiaries Lundin Malaysia Ltd., 26.44%, and Lundin Malaysia AB, 15%. Petronas Carigali Sdn. Bhd., the exploration arm of Petronas, holds 46.06%, and PetroVietnam Exploration & Production holds 12.5%.

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