Shell Malaysia asset sale clears hurdle

KUALA LUMPUR, May 30, 2017 – Shell has been given the green light by Petronas to sell its stake in the North Sabah Enhanced Oil Recovery project to Malaysian player Hibiscus Petroleum, the latter said on Tuesday.

The Anglo-Dutch major and Hibiscus reached an agreement in October 2016 on the sale of the former’s 50% interest in the project. Final approval depends on the companies meeting certain conditions, which are currently being reviewed. Both Shell and Hibiscus have declined to offer details on Petronas’ stipulations.

“If further clarifications are required from Petronas in respect of these conditions, these will be sought in due course and the company [Hibiscus] will make further announcements, if appropriate,” a statement read.

Valued at the USD 25 million, the deal will see the Malaysian entity gain access to the project’s remaining proven and probable reserves of some 62 million barrels of oil. The project, which yielded 18,000 bopd in 2015, features 19 platforms and structures, in addition to 135 wells. The production-sharing contract for the area expires at year-end 2040.

In related news, Icon Offshore has bagged a Shell contract for anchor handling tug supply vessel services. The USD 1.3-million contract for work offshore Malaysia is for a duration of 10 months.

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