The Malaysian unit of Royal Dutch Shell is considering divesting its interests in two production-sharing contracts located offshore Sarawak.

The decision to consider divestment options for the Amended 2011 Baram Delta EOR Production Sharing Contract (PSC) and the SK 307 PSC forms part of Shell Group’s strategy to focus and increase resilience and competitiveness in its upstream business.

In a press statement, Shell said: “Malaysia remains an important country to the Shell Group with a continued strong presence in its upstream, gas-to-liquids, downstream and business operations sectors.

“The upstream business in Malaysia has been identified as one of Shell Upstream’s nine Core Performance Units worldwide.”

PETRONAS Carigali , a unit of state energy firm Petronas, operates the Baram Delta EOR and the SK307 production-sharing contracts.

Sarawak Shell owns a 40% stake in Amended 2011 Baram Delta EOR PSC and 50% interest in SK307 PSC. The remaining stake in the two PSCs is held by Petronas Carigali.

Signed in 2016, the Amended 2011 Baram Delta EOR PSC aims to extend the life and increase the recovery factor of the Baram Delta.

The (Amended) 2011 Baram Delta EOR PSC involves Bokor, Baronia, Fairley Baram, Bakau and Siwa oil fields and Tukau Timur and Baronia gas fields.

The SK307 PSC, which was signed in 1997, has production from the Baronia Barat oil field.