Lundin Petroleum AB has entered an agreement to sell the FPSO Bertam to M3nergy Investment Ltd., a subsidiary of M3nergy Berhad of Malaysia, in a $265 million deal with a Jan. 1 effective date, a news release said.

The agreement involves selling the 100 percent issued share capital of Lundin Services Ltd., which owns the FPSO Bertam. The agreement remains subject to certain completion conditions, including the finalization of M3nergy’s external financing. The transaction is expected to complete during first-quarter 2016, the release said.

Lundin said it completed an extensive upgrade and life extension program on the FPSO Bertam in 2015. The FPSO is now operating on the Bertam Field offshore Malaysia. The field, operated by Lundin with a 75% working interest with Petronas Carigali holding the remaining 25%, commenced production in April 2015.

M3nergy Berhad is a wholly owned subsidiary of the Sabah Development Bank Berhad in Malaysia, which is in turn wholly owned by the finance ministry of the state of Sabah, part of federation of Malaysia. M3nergy Berhad is an integrated service provider to the oil and gas industry in South East Asia, according to the release.

Offshore