SPM Spg Media

RNS No 0485q
SODRA PETROLEUM AB                                
12th January 1999

                        SODRA PETROLEUM AB


Sodra Petroleum AB announces that its parent company, Lundin Oil
AB ("Lundin") has today issued the following announcement:-
                                 
                                 
             Block PM-3 CAA Offshore Malaysia/Vietnam:
                         Phase-II Deferred
                                 
Lundin  Oil AB ("the Company"), operator of Block PM-3  CAA  ("the
Block"),  the  Commercial Arrangement Area  between  Malaysia  and
Vietnam,  announces  that Phase-II of the PM-3  CAA  oil  and  gas
development  has been deferred due to the current  low  oil  price
environment.  The Company is in close consultation  with  Petronas
and  its  partners, Petronas Carigali and PetroVietnam Exploration
and  Production with a view to agreeing a new timetable for  Phase
II  which was originally due to come onstream in December 2000  at
the  rate  of  250 million cubic feet per day of  gas  and  40,000
barrels per day of oil.

Phase  I, which consists of a light weight structure on the  Bunga
Kekwa Field and a FPSO (Floating Production Offloading and Storage
Vessel), continues to produce at the rate of approximately  12,000
barrels of oil per day and the Company is currently studying  ways
to  enhance  oil  production  in the short  to  medium  term.  The
deferment  of  Phase  II  offers an opportunity  to  optimize  the
overall  development  of  the Block in  view  of  recent  drilling
successes  in  the  Bunga Seroja channel  sands  which  result  in
material  increase in the hydrocarbon reserves within  the  Block,
which stood at 380 million barrels equivalent at the beginning  of
1998.  Petronas  and  PetroVietnam have both expressed  continuing
interest  in  taking gas from the Block to meet their  future  gas
demands.

Ian  Lundin,  president of Lundin Oil AB said; "This deferment  is
actually  a positive development as it allows us to fine tune  the
Project  and  take a fresh look at all aspects of the  development
with  a  particular  focus  on  reducing  the  capital  costs  and
optimizing  production  levels.  We  enjoy  an  excellent  working
relationship with Petronas, PetroVietnam and our partners and  are
extremely  grateful for their continued support in this  difficult
market environment. We remain totally committed to the Project and
are very confident that the substantial oil and gas reserves in PM-
3  CAA  will be fully developed in the most prudent and  efficient
manner possible."

Lundin  Oil  AB  has  a  41.44 % interest in  the  Block,  whereas
Petronas  Carigali and PetroVietnam Exploration & Production  have
46.06% and 12.5% interest respectively.

For further information, please contact:

Ian H. Lundin
Managing Director - Lundin Oil AB
Tel: +41 22 3196606

Magnus Nordin
Managing Director - Sodra Petroleum AB
Tel: +46 705 766 555

Judith Parry / Simon Rothschild
Millham Communications
Tel: 0171 256 5756


Notes for editors:

1.   Lundin is the parent company of Sodra by virtue of its
holding of 40,506,500 Ordinary Shares of SEK0.05 each.  The
40,506,476 Convertible Shares of SEK0.05 each in Sodra listed on
the AIM market are effectively convertible into the right to
subscribe for B Shares in Lundin in November 2001.  Upon exercise
of the conversion right, for every 12 Convertible Shares, the
holder will receive a warrant to subscribe for 1 new Lundin B
Share at the nominal value of SEK0.50.

2.   Convertible Shares in Sodra are also listed on the New Market
of the Stockholm Stock Exchange.  Lundin B Shares are currently
quoted on the Stockholm Stock Exchange, Toronto Stock Exchange and
the Nasdaq National Market.

END

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