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Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden)

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To: Tomas who wrote (2332)	5/3/2001 10:08:32 PM
From: Tomas	Read Replies (1) of 2742

Malaysia: Low bidder's nail-biter for Lundin FSO - Lobbying effort has consortium waiting in wings on Vietnam job Upstream, May 4 By James Tham A consortium comprising Tanker Pacific and FPSO Tech has once again emerged as the lowest bidder in Lundin Oil's re-tender for a floating storage and offloading vessel to be deployed in the PM-3 block in the Malaysia/Vietnam Commercial Arrangement Area. However, the pair is being forced to wait in the wings as the next lowest bidder, Bumi Armada with Modec, continues to lobby Lundin and Malaysian state oil company Petronas for the coveted job. Tanker Pacific and FPSO Tech had submitted the lowest bid in the original exercise but a re-tender was ordered by Petronas for reasons that remain unclear. FPSO Tech is a new company founded by former senior Petronas officials. A source close to the tender said that the two lowest bids were "too close to call" with Tanker Pacific proposing a conversion and Bumi bidding with a newbuild. According to industry sources, the capital expenditure for an FSO for Lundin is estimated at $70 million to $80 million. The Swedish oil company plans to lease the floater for 20 years. Lundin had earlier short-listed only Bumi with Modec; Tanker Pacific with FPSO Tech;Trenergy with Malaysia Shipyard and Engineering; and Aker with Saipem. The other bidders were SBM, Bluewater, Nortrans and Care Offshore. Currently, the Bunga Kekwa oilfield in PM-3 is producing around 18,000 barrels per day of oil through an early production scheme involving an unmanned monopod wellhead platform and a leased floating production, storage and offloading vessel. Phase two, which involves larger platforms and an FSO, seeks to bring on stream neighbouring finds with targeted production of 40,000 bpd of oil and 250 million cubic feet per day of gas in late 2003.

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