As part of its continuous global portfolio rationalisation, Shell has decided to explore its options to divest its non-operated interests in the amended 2011 Baram Delta EOR production sharing contract (PSC) and the SK 307 PSC.
The assets located offshore Sarawak, Malaysia are operated by Petronas Carigali Sdn Bhd, and Sarawak Shell Bhd is a non-operating partner.
“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,” it said in a statement.
The British-Dutch multinational oil and gas (O&G) company said Malaysia remains an important country to the Shell group with a continued strong presence in its upstream, gas-to-liquid, downstream and business operations sectors.
It noted that the upstream business in Malaysia had been identified as one of Shell upstream’s nine core performance units worldwide.
Shell has been a partner of the nation’s progress over its 130 years of operations in the country, contributing to the success of its energy industry, the development of Malaysian talent and communities.
The company said it will continue to play an important role in powering Malaysia’s future with cleaner, innovative and competitive energy solutions.
About BARAM DELTA
The Amended 2011 Baram Delta EOR PSC
PETRONAS Carigali holds a 60% equity interest in the Amended 2011 Baram Delta EOR Production Sharing Contract (PSC) and is 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.
SK307 PSC
PETRONAS Carigali holds a 50% equity interest in the SK307 PSC and is operator, with Sarawak Shell Berhad holding remaining 50% equity interest. The SK307 PSC was signed in 1997 and currently has production from Baronia Barat oil field.
