Lundin completes Salawati assets sale

Swedish independent oil, gas firm Lundin Petroleum AB announced Wednesday that it has completed the sale of its non-operated interests in the Salawati Basin and Island assets, located in West Papua to Singapore Exchange-listed firm RH Petrogas Limited (RHP).

Lundin Petroleum and RHP completed the transaction on Dec. 29, 2010 for a consideration of US$37.1 million effective Jan. 1, 2010 with additional payments due in the event of further field development of up to $3.9 million, the company said.

Ashley Heppenstall, President and CEO of Lundin Petroleum comments; "We are very pleased to have completed the sale of our Salawati Island and Basin assets in Indonesia to RHP. This will allow us to focus on our exploration driven growth strategy in SE Asia where we will commence a 5 well drilling programme in 2011. Lundin Petroleum has also recently been awarded the South Sokang PSC in Indonesia".

Lundin Petroleum held 25.936 percent interest in the Salawati Basin asset (formerly known as Kepala Burung PSC) and 14.5122 percent interest in the Salawati Island asset (formerly known as Salawati Kepala Burung PSC), both operated by PetroChina. (denny)