LUNDIN Petroleum will acquire a 50 per cent interest in a block offshore Malaysia under a new production sharing contract with Petronas.

The company will acquire the operating stake in block PM 328 from Petronas Carigali – which will retain a 40% share, with the remaining 10% to be held by E&P Malaysia Venture.

PM328 covers an area of 560,000 hectares offshore Malaysia, north east of PM307 which is also operated by Lundin Malaysia.

The initial PSC term is for 3 years; within the first 18 months Lundin Malaysia has committed to undertake the acquisition of 600 square kilometres of 3D seismic.

Lundin Malaysia then has the option to commit to drilling one well in the remaining 18 months, or elect to hand back its interests to Petronas Carigali without penalty.