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

First Production Starts at ADNOC’s Belbazem Offshore Block

Brassavola Completes Maiden Ship-to-Ship LNG Bunkering Operation

Jadestone Eyes Woodside’s Macedon and Pyrenees Fields Offshore Australia

CNOOC’s Oil Field in Bohai Sea Starts Production

QatarEnergy Signs 15-year LNG Supply Deal with Excelerate Energy

Jadestone Outlines Gas Sale Terms with PV Gas for Fields Offshore Vietnam

Seatrium Starts Fabrication of Shell's Sparta FPU

Aibel-Built Modules for Bacalhau FPSO Set Sail for Singapore

WoodMac: Asian LNG Demand Could Rise 5% in 2024

McDermott Scoops Contract for CCS Project Offshore Malaysia

Current News

Subsea Vessel Market is Full Steam Ahead

China's Imports of Russian Oil Near Record High

TotalEnergies Inks $530M Deal to Acquire Malaysia’s SapuraOMV

Energy Storage on O&G Platforms - A Safety Boost, too?

Malampaya Gas Field Exceeds Export Capacity Amid Grid Demands in Philippines

Timor-Leste: Chuditch-2 Well to be Drilled at New Location Following Site Surveys

Akastor’s Subsidiary Wins $101M Case Against Seatrium's Jurong Shipyard

ONGC Hires Consortium to Deliver FEED Work for Bay of Bengal Oil Field

BP Starts Oil Production at Major New Platform Offshore Azerbaijan

Woodside and Partners Appoint Wood for Greater Sunrise Gas Concept Study

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