Lundin and partners buy shares of Cai Nouc area off Viet Nam

Lundin Oil AB and two partners have acquired the interests of Fina Exploration Minh Hai BV and PTTEP International Ltd. in the Cai Nouc development area off Viet Nam. The deal is subject to governmental approval. Terms of the transaction were not disclosed.


By the OGJ Online Staff

HOUSTON, Apr. 23 -- Lundin Oil AB and two partners have acquired the interests of Fina Exploration Minh Hai BV and PTTEP International Ltd. in the Cai Nouc development area off Viet Nam.

The deal is subject to governmental approval. Terms of the transaction were not disclosed.

Lundin will operate the area with 33.154034% interest; Malaysian state company Petronas Carigali Overseas Sdn. Bhd. owns 36.845966%; and Vietnamese state company Petrovietnam E&P, 30%.

The area contains a unitized portion of Cai Nuoc/Kekwa field, which is producing 18,000 b/d of oil.

A second phase of development of the field will come on stream in the third quarter of 2003, bringing production to 250 MMcfd of gas and 40,000 b/d of oil.

Lundin Oil Pres. Ian Lundin said, "This asset will add significant proven oil and gas reserves to our existing Southeast Asia portfolio. The fact that the same partners have an interest on both sides of the border between Malaysia and Viet Nam means that Kekwa/Cai Nuoc field will be developed in the most cost-efficient and effective manner."

Fina Exploration Minh Hai is a subsidiary of French company TotalFinaElf SA. PTTEP International is an affiliate of the Petroleum Authority of Thailand.

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