OSLO, Norway, Jan. 22 (UPI) -- Swedish energy company Lundin Petroleum said it was taking in cash after shedding infrastructure in Malaysia it said is not part of its core business strategy.
Lundin said it agreed to sell offshore floating production and storage vessel Bertram to M3Energy Investment Ltd., a state-controlled energy company in Malaysia, for $265 million.
"Owning infrastructure assets is not part of Lundin Petroleum's core strategy and this transaction will allow us to redeploy this capital into other areas of our business to fund our value driven growth," President and CEO Alex Schneiter said in a statement.
Lundin has struggled through the market downturn, trimming its production guidance lower last year to 32,000 barrels of oil equivalents per day. The company left 2014 with $758.2 million in revenue, 33 percent less than the previous year. Revenues for the first half of 2015 were down nearly 40 percent year-on-year.
Last week, Norwegian energy company Statoil spent $538 million to acquire an 11.9 percent stake in Lundin, saying the move would add value to its position on the Norwegian continental shelf, where both companies are actively engaged.
Lundin will stay on in Malaysia as an operator of the Betram field off the country's coast. After selling off its Indonesian oil and gas assets in early October for $22 million, Lundin said Malaysia would be central to its growth strategy in Southeast Asia.
The Bertam field is estimated to hold about 18.4 million barrels of oil equivalent, most of which exists as oil. The field is expected to have a 10-year lifespan.