View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
March 15, 2021

Shell looking to divest stakes in two non-operated assets in Malaysia

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

By Umesh Ellichipuram

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.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Offshore Technology