Lundin Malaysia has signed farm-out agreements with Dutch company DYAS’s subsidiaries for part of its working interests across three production sharing contracts (PSC) in Malaysia.

The agreements will cover Blocks PM328, SB307/308 and gas holding areas in SB303.

Under the agreements, DYAS will get a 20% working interest for paying on certain costs in relation to the upcoming exploration campaign on Block SB307/308 in the Sabah region offshore East Malaysia.

"This facility will allow us to fund the Johan Sverdrup development through to first oil."

The agreement will also see Lundin transferring a 20% working interest in the gas holding area in Block SB303 in Sabah, in addition to a 15% working interest in PM328 in the Malay basin.

Following this transaction, Lundin will own a 65% working interest in SB307/308, along with a 55% interest in SB303 and a 35% interest in PM328.

Completion of the deal is subject to approval from relevant authorities.

Separately, Lundin Petroleum said it will receive a credit facility of up to $5bn from international banks, with an initial committed amount of $4.3bn to fund its interest in Norway’s Johan Sverdrup project.

Lundin Petroleum president and CEO Alex Schneiter said: "We are very pleased to complete this financing with such a high profile group of 23 international banks, combining existing and new lenders to Lundin Petroleum.

"This facility, along with cash flows generated from the strongest production our company has ever achieved, will allow us to fund the Johan Sverdrup development through to first oil."