Shell Completes Sale of Baram Delta and SK307 Offshore Blocks to PSEP

OE Staff
Wednesday, March 15, 2023

Shell's Malaysian subsidiary Sarawak Shell Berhad has completed the previously announced sale of its stake in two offshore production sharing contracts (PSC) in the Baram Delta to Petroleum Sarawak Exploration & Production Sdn. Bhd. (“PSEP”).

The sale concerns non-operated interests of 40% in the Amended 2011 Baram Delta EOR Production Sharing Contract (“BDO PSC”) and 50% in the SK 307 Production Sharing Contract (“SK307 PSC”).  Shell said back in December that it would sell its stakes in the offshore blocks for $475 million.

Following the sale to PSEP, the remaining interests in both PSCs are held by the operator, Petronas Carigali.

Completion of the sale follows regulatory approval from Malaysia Petroleum Management (MPM), Petronas as the custodian of national hydrocarbon resources in Malaysia. The transaction has an effective date of January 1, 2023.

"This divestment is in line with Shell’s work to focus its Upstream portfolio. Shell retains a strong presence in Malaysia’s upstream, gas-to-liquids, downstream, and business services sectors," Shell said.

Following the completion of this divestment, Shell holds 19 Production Sharing Contracts (PSCs) in Malaysia.

On September 5, 2022, Shell announced an investment in Rosmari-Marjoram in Sarawak, Malaysia. Rosmari-Marjoram is a natural gas project which will be developed with SSB (Operator, 80%) and PCSB (20%).

The Rosmari-Marjoram deepwater sour gas fields, discovered in 2014, are located offshore Bintulu, Sarawak, Malaysia.

The project will involve the construction of a solar-powered offshore platform.  

Categories: Industry News Activity Production Asia

Related Stories

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

Petronas Expands Suriname Portfolio with Deepwater Block Acquisition

Woodside Agrees Long-Term LNG Supply with Petronas Unit

Yinson Production Closes $1B Investment to Drive Further Growth

Petronas-Eni Upstream Joint Venture to Take Up to Two Years to Set Up

Chuditch Gas Field Drilling Ops Get Delayed to Next Year

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

CNOOC Starts Production at Two New Oil and Gas Projects

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

Current News

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com