Upstream oil and gas exploration and production company, Mubadala Petroleum has entered into a deal with Shell to swap equity in two exploration blocks offshore Malaysia.
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Under the deal, Mubadala will gain a 20% interest in the deepwater block 2B, while Shell will gain a 20% interest in block SK320.
Shell operates the deepwater block 2B and Mubadala Petroleum operates block SK320, while PETRONAS Carigali is a participant in both blocks.
The current exploration drilling campaign in block SK320 has also yielded two new gas discoveries known as Pegaga and Sintok, to add to the existing M5 discovery.
Mubadala Petroleum’s CEO, Maurizio La Noce, said the company’s equity swap agreement with Shell is an important step for its growth strategy in Malaysia, marking its first partnership in Southeast Asia with Shell.
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By GlobalData"In relation to our recent exploration success, we need to do further work to determine the full extent and commerciality of those discoveries, but coupled with the new partnership with Shell, we are moving our business in Malaysia in a positive direction," Noce said.
According to Mubadala Petroleum, the Sintok-1 well was drilled to a depth of 2775m into the main target reservoir and penetrated a 290m gas-bearing carbonate reservoir.
As planned, the well will be plugged and abandoned, after which a third prospect, Sirih, will be drilled, adjacent to Sintok.
Awarded to Mubadala Petroleum and PETRONAS in 2010, block SK320 contains the M5 discovery.
Adjacent to block SK320, deepwater block 2B was awarded to Shell and PETRONAS in 2012.
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