Shell divests interest in Malaysian assets

Shell has agreed to sell its non-operating stakes in two offshore blocks in Malaysia’s Baram Delta, the British energy giant announced on Tuesday.

The agreement will see 40% interest in the Amended 2011 Baram Delta EOR concession and 50% interest in the SK 307 concession to Malaysian state-owned Petroleum Sarawak Exploration & Production.

Under the deal, the base consideration for the cost is USD 475 million, with additional payments of up to USD 50 million to be paid between 2023 and 2024 based on commodity prices.

The transaction is dated for January 1, 2023, and is expected to be completed in early 2023 upon government approval and consent from Petronas.

The remaining stakes in both fields are held by Petronas Carigali.

Petroleum Sarawak Exploration & Production is a fully owned subsidiary of Petroleum Sarawak, the state of Sarawak’s oil and gas entity.

The Amended 2011 Baram Delta EOR PSC was signed in 2016 and consists of the Bokor, Baronia, Fairley Baram, Bakau and Siwa oil fields and Tukau Timur and Baronia gasfields.

The SK 307 PSC was signed in 1997 and contains the producing Baronia Barat oilfield.

Shell holds 19 blocks in Malaysia. The company successfully bid on four PSCs in the nation’s 2021 oil and gas bid round.