Sweden’s Lundin Petroleum plans to sell its floating production storage and offloading unit FPSO Bertam to Malaysia’s M3nergy have been abandoned.
The independent oil and gas exploration and production (E&P) company inked an agreement in January to sell the unit for $265m.
The sale was, however, subject to M3nergy finalising external financing for the acquisition, which was expected to be completed before the end of March.
In its H1 2016 results today, Lundin confirmed that the Malaysian FPSO operator was unable to secure financing within the requisite timeframe, causing the sale agreement to be terminated.
The 1971-built FPSO is currently operating at the Bertam field in offshore Malaysia. Net production at the Bertam field was 8.6m boepd during the first six months of 2016 from 11 wells, Lundin said. An additional well came online at the field in June.