Shell completes sale of two PSCs in Malaysia
Sarawak Shell, a subsidiary of Shell, has completed the sale of its stake in two offshore production sharing contracts (PSC) in the Baram Delta to Petroleum Sarawak Exploration & Production, Shell said on March 15. The deal was announced in December last year.
The sale consists of 40% in the Baram Delta EOR PSC and 50% in the SK 307 PSC. The remaining interests in both PSCs are held by the operator, Petronas. The base consideration for the sale is $475mn, with additional payments of up to $50mn between 2023 to 2024 contingent on commodity prices.
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Completion of the sale follows regulatory approval from Malaysia Petroleum Management, Petronas as the custodian of national hydrocarbon resources in Malaysia. The transaction has an effective date of January 1, 2023.
Shell said this divestment is in line with its work to focus its upstream portfolio. The company in September last year took the final investment decision on its billion-dollar deepwater investment Rosmari-Marjoram offshore Sarawak, paving the way for up to 800mn ft3 /d to be produced, with the first gas expected in 2026.