Lundin strikes oil offshore peninsula

LUNDIN Petroleum AB, the Swedish petroleum exploration and production compan, made its first oil discovery offshore Peninsular Malaysia recently.

The company announced on November 23 that it made the breakthrough in the Janglau-1 well in Block PM308A offshore Peninsular Malaysia.

"Janglau-1 was drilled to a total depth of 3,820 metres by the jackup rig called Offshore Courageous," the company said in a statement.

It added that following completion of the well, further work would be undertaken on the data recovered to fully evaluate the discovery and its potential.

Lundin Petroleum started the drilling of the Janglau prospect in PM308A offshore Peninsular Malaysia on September 23.

Lundin Petroleum president and chief executive officer Ashley Heppenstall said the Janglau-1 result is further validation of the company's strategy of pursuing organic growth opportunities in focused areas with evidence of active petroleum systems.

"This is Lundin Petroleum's first discovery in this area and follows two prior gas discoveries in the Sabah core area drilled earlier in 2011.

Janglau-1 confirms a new oil play where Lundin Petroleum has built up a significant production-sharing contract (PSC) position.

"Lundin Petroleum, together with its partners, looks forward to further exploration drilling in PM308A in the coming years and building on the encouragement provided by Janglau-1," Heppenstall said.

This year, Lundin Petroleum made its first gas discovery in the Tarap-1 well in Block SB303 offshore Sabah on July 27, followed by another discovery at Cempelut-1 well in Block SB303 offshore Sabah on August 4.

The PSC for PM308A is operated by Lundin Malaysia BV with 35 per cent equity interest, and partners JX Nippon Oil & Gas Exploration (Peninsular Malaysia) with 40 per cent interest and Petronas Carigali with 25 per cent.

Following completion of Janglau-1, Lundin Petroleum said Offshore Courageous would move to the Bertam-2 appraisal well in the adjacent PM307 PSC area.

Lundin Petroleum now operates a total of six blocks in Malaysia, which is divided into two core areas, namely Peninsular Malaysia and offshore Sabah.