Shell is seeking to divest its non-operated interests in the amended 2011 Baram Delta enhanced oil recovery (EOR) production-sharing contract (PSC) and the SK 307 PSC, both offshore Sarawak in Malaysia.
Both the PSCs are operated by Malaysian national oil company (NOC) Petronas Carigali.
Shell said on Friday that the decision was in line with its upstream strategy to become more focused and increase its competitiveness. The Anglo-Dutch supermajor added that it “remains committed to supporting the operator in delivering safe and smooth operations until completion of a sale to a credible buyer.”
Shell added that Malaysia remains an important country for the company with its continued strong presence in the upstream, gas-to-liquids, downstream and business operations sectors. The upstream business in Malaysia has been identified as one of Shell’s nine core upstream performance units worldwide.
Petronas operates the Amended 2011 Baram Delta EOR PSC with a 60% stake on behalf of Shell, which holds 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.
Petronas operates the SK307 PSC on 50% interest with Shell holding the remaining 50% equity interest. The SK307 PSC was signed in 1997 and currently has production from Baronia Barat oil field.