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December 8, 2013

Petronas, Shell win Brunei’s offshore blocks

Malaysia's state-run company Petronas and global oil and gas major Shell have been awarded two offshore blocks by Brunei's national oil company, PetroleumBrunei.

Malaysia’s state-run company Petronas and global oil and gas major Shell have been awarded two offshore blocks by Brunei’s national oil company, PetroleumBrunei.

The blocks, N and Q, are located in eastern shallow water areas offshore of Brunei and both firms own equal 50:50 equity interests in the two blocks.

Petronas will act as the operator for block N, while Shell Deepwater Brunei will hold operatorship for block Q.

Petronas signed more agreements with PetroleumBrunei for beneficial cooperation in the oil and gas industry between two parties.

Both parties have signed a head of agreement (HoA) for Malaysia’s Kinabalu West NAG field and Brunei’s Maharajalela North Panel field towards formalising unitisation.

The agreement will pave the way for the two parties to resolve a number of issues relating to the unitisation and future development of these straddling fields.

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Another HoA was also signed towards a provisional arrangement for joint development of Malaysia’s Gumusut/Kakap field and Brunei’s Geronggong/Jagus-East field, said Petronas.

Progress Energy and Pacific NorthWest LNG, Petronas’s Canadian subsidiaries, have entered into a deal with PetroleumBrunei for the latter to acquire three percent equity in Progress Energy Canada’s natural gas assets and in the proposed Pacific NorthWest LNG’s export facility.

Under the proposed transaction, PetroleumBrunei will buy a three percent share of the LNG facility’s production for a minimum of 20 years.

A memorandum of understanding was signed by Malaysia Marine and Heavy Engineering, a unit of Petronas’s subsidiary MISC Bhd, with PetroleumBrunei subsidiary PB Services Sdn to form an engineering and fabrication services company in a 30:70 joint venture.


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