Shell, Petronas Sign New PSC

Shell Malaysia has signed a new production sharing contract (PSC) with Petronas to explore for oil and gas offshore Sarawak.

The SK319 PSC will see Shell undertake an initial the year exploration program to comprehensively explore an area totalling 2,727 square kilometres within block SK319 in Central Luconia, offshore Sarawak. Sarawak Shell Berhad is the operator and will partner Petronas Carigali with a 50:50 participating equity split.

The new PSC forms part of Shell’s Low Cost Exploration & Development (LCD) focus that will allow the company to carry out a multi-well exploration campaign to further explore and de-risk the mature carbonate pinnacle play in Central Luconia.