Having made several discoveries at fields offshore Peninsular Malaysia and Sabah this year, Lundin Petroleum AB remains bullish on Malaysia's oil and gas sector.
"We remain very optimistic about the Malaysian oil and gas industry and plan to continue to evaluate new opportunities and grow wherever possible," Lundin Petroleum head of corporate communications Maria Hamilton told Business Times.
On Lundin Petroleum's capital expenditure in Malaysia for this year, Hamilton said:
"We plan to immediately commence our activities and will only make a decision on drilling and capital investment once we have sufficient time to fully evaluate the new data."
Lundin Petroleum recently announced that it had been awarded the licence by Petroliam Nasional Bhd (Petronas) to operate a new block, Block PM319, offshore Peninsular Malaysia.
The Swedish company said its wholly-owned subsidiary, Lundin Malaysia BV, had signed a new production sharing contract (PSC) with Petronas covering the block.
Block PM319 covers an area of about 8,400 sq km and is located west of Block PM307 where Lundin Petroleum and Petronas Carigali Sdn Bhd, the exploration and production arm of Petronas, achieved success last year with the appraisal of the Bertam oil field and the discovery of gas at the Tembakau-1 well.
Under the new PSC for Block PM319, Lundin Petroleum holds an 85 per cent interest through Lundin Malaysia, while Petronas Carigali owns the remaining 15 per cent.
During the last five years, Lundin Petroleum has acquired a number of prospective exploration licences offshore Sabah and Peninsular Malaysia.
The company started exploration and drilling offshore Sabah in 2011, with two gas discoveries on the Tarap and Cempulut prospects.
A further oil discovery was made on the Janglau prospect in PM308A, offshore Peninsular Malaysia.
For 2012, five exploration wells had been planned for drilling in Malaysia.
On October 30 2012, Prime Minister Datuk Seri Najib Razak announced that Petronas Carigali and Lundin Petroleum had discovered additional oil fields at Block PM307 of the Bertam oil field.
Initially, the discovery was considered to be the first offshore Pahang, but, eventually, was made known to be in the Terengganu waters.
From its drilling programme for 2012, Lundin Petroleum managed to make its third gas discovery offshore Sabah, with the latest at Berangan-1 well in SB303 block in September.
The Berangan-1 well is located 10km to the southeast of the Tarap gas discovery made by the company in 2011 and 15km of the Cempelut gas discovery, also made in 2011.
Lundin Petroleum also made another gas discovery at Tembakau-1 well in PM307 block offshore Peninsular Malaysia last November.
The Tembakau-1 well is located 30km to the west of the nearest oil and gas infrastructure in Terengganu.
Overall, Lundin Petroleum now operates a total of seven blocks in Peninsular Malaysia and Sabah's core areas.