STOCKHOLM, Sweden, Oct. 9 (UPI) -- Swedish energy company Lundin Petroleum said it was keeping an eye on the Asian market, but unloading its oil and gas holdings in Indonesia.
Lundin announced it signed an agreement to sell its oil and gas assets in Indonesia to Indonesian company Medco for $22 million. Net reserves sold to Medco, the operator and Lundin's partner in the Singa natural gas field, total 900,000 million barrels of oil equivalent.
"We remain committed to our growth strategy in Southeast Asia where Malaysia continues to be one of Lundin Petroleum's core areas," Lundin President and Chief Executive Officer Alex Schneiter said in a statement.
Lundin's Malaysian subsidiary started commercial production from the Bertam field in April using four pre-drilled development wells. Peak production of 15,000 barrels of oil per day is expected by the end of the year.
Lundin revised its production guidance lower to 32,000 barrels of oil equivalents per day as a result of less than expected output from fields off the coast of Norway. Revenue for the first half of the year was $279 million, down nearly 40 percent year-on-year.
For Medco, the company said the acquisition is in line with its goal of maximizing production from the Singa gas field. In total, Medco said the acquisition should help contribute to full-year natural gas production of 42 million cubic feet per day in 2015.
Natural gas production in Indonesia increased by more than 20 percent in the decade ending in 2012, the U.S. Energy Information Administration reported. The country exports about half its natural gas and is one of the largest exporters of liquefied natural gas in the world.