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.