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Shell Looking to Sell Interests in Malaysian Offshore Blocks

March 15, 2021

Illustration only -  wanfahmy/AdobeStock
Illustration only - wanfahmy/AdobeStock

Oil major Shell is exploring options to sell its non-operated interests in the Amended 2011 Baram Delta EOR Production Sharing Contract (PSC) and the SK 307 PSC, offshore Malaysia.

The assets located offshore Sarawak, Malaysia, are operated by Petronas Carigali and Sarawak Shell Berhad is a non-operating partner. 

Petronas Carigali holds a 60% equity interest in the Amended 2011 Baram Delta EOR Production Sharing Contract (PSC) and is the operator, with Sarawak Shell Berhad holding the remaining 40% equity interest. 

The Amended 2011 Baram Delta EOR PSC was signed in 2016, to extend the life and increase the recovery factor of the Baram Delta. The (Amended) 2011 Baram Delta EOR PSC comprises the Bokor, Baronia, Fairley Baram, Bakau, and Siwa oil fields, and Tukau Timur and Baronia gas fields.

As for the SK307 PSC, Petronas Carigali holds a 50% equity interest in the SK307 PSC and is the operator, with Sarawak Shell Berhad holding the remaining 50% equity interest. The SK307 PSC was signed in 1997 and currently produces from Baronia Barat oil field.

"This decision is in line with the Shell Group’s strategy for its Upstream business to become more focused and to increase its resilience and competitiveness. Shell Malaysia remains committed to supporting the Operator in delivering safe and smooth operations until completion of a sale to a credible buyer," 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," Shell said, adding that the upstream business in Malaysia has been identified as one of Shell Upstream’s nine Core Performance Units worldwide. 




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