Lundin sells Russian assets

Russian sale: Lundin has reached a deal to sell off its stake in two fields to operator Arawak

Sweden’s Lundin Petroleum has reached an agreement with Arawak Energy Russia to sell off its interest in assets in Russia’s Komi region.

Lundin is selling its 50% stake in the Sotchemyu-Talyu and the North Irael fields to Arawak, which currently holds the other 50% interest and is operator.

Lundin did not provide the full financial details of the deal in Thursday’s announcement but did reveal it would incur a a non-cash financial expense of $12.5 million for the period ended 30 June related to the carrying value of the assets and related funding loans.

The company’s net share of reserves across the fields amount to 6.1 million barrels of oil equivalent and Lundin said net production was estimated at 2150 barrels of oil equivalent per day during the first half of the year.

If the sale of the fields is completed this month, Lundin said it expected its full year production across its portfolio to now average between 24,000 and 29,000 boepd.

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