Sarawak Shell has agreed to sell its stake in two offshore production sharing contracts (PSC) in the Baram Delta to Petroleum Sarawak Exploration and Production.
The sale by the subsidiary of Shell concerns non-operated interests of 40% in the amended 2011 Baram Delta EOR Production Sharing Contract and 50% in the SK 307 Production Sharing Contract.
The remaining interests in both PSCs are held by the operator, PETRONAS Carigali.
The base consideration for the sale is $475 million (€450 million), with additional payments of up to $50 million (€47 million) between 2023 to 2024 contingent on commodity prices. The transaction has an effective date of January 1, 2023, and is targeted to be completed early next year subject to completion of conditions which includes regulatory approval to be obtained from PETRONAS and consent from PCSB.
“This decision is in line with our work to continue focusing our portfolio,” said Zoe Yujnovich, Shell’s upstream director.
“Malaysia remains one of our eight core Upstream positions worldwide and we will continue to help power the country’s progress by investing in the oil and gas needed today, as well as in the transition to a low-carbon energy system.”
Shell retains a strong presence in Malaysia’s upstream, gas-to-liquids, downstream and business services sectors. The intention to divest its interests in the BDO PSC and SK307 PSC was announced by Shell in March 2021.
Shell to sell non-operated interests in Malaysia’s Baram Delta
