Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Lundin Oil (LOILY, LOILB Sweden) -- Ignore unavailable to you. Want to Upgrade?

To: Tomas who wrote (2682)	8/2/2001 9:33:00 PM
From: Tomas	Read Replies (1) \| Respond to of 2742

Lundin Oil: Duo snares Asian floater pearl Upstream, August 3 James Tham Tanker Pacific and FPSO Tech have jointly clinched a coveted contract to supply a floating storage and offloading vessel for Lundin Oil's Bunga Kekwa phase-two development in block PM-3 in the Malaysia/Vietnam Commercial Arrangement Area. According to industry sources, the Singaporean-Malaysian pair this week signed a 20-year lease agreement with Lundin, ending months of fierce jostling against a rival group comprising Japan's Modec and Malaysia's Bumi Armada. Some industry sources earlier tipped Modec-Bumi as the frontrunner, although Tanker-FPSO had lodged the lowest bid in a re-tender. The bid evaluation process, led by Malaysian state oil company Petronas, was delayed for months by heavily-politicised lobbying on both sides. Tanker Pacific will supply a converted FSO with storage space for 800,000 barrels of crude and a single-point mooring system. The capital expenditure for the FSO is estimated at $70 million to $80 million, according to sources. 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. The gas will be delivered to Malaysia under two 10-year contracts signed earlier this year. Gross proven and probable reserves in PM-3 stand at 1.85 trillion cubic feet of gas and 155.3 million barrels of liquids. The participants in PM-3 are operator Lundin, now a subsidiary of Talisman Energy (41.44%), Petronas Carigali (46.06%) and PetroVietnam (12.5%).