Sarawak Shell Berhad, a subsidiary of Shell, completed the previously announced sale of its stake in two offshore production-sharing contracts (PSC) in the Baram Delta to Petroleum Sarawak Exploration & Production (PSEP).
The sale concerns nonoperated interests of 40% in the amended 2011 Baram Delta EOR production-sharing contract (BDO PSC) and 50% in the SK 307 production-sharing contract (SK307 PSC). The remaining interests in both PSCs are held by the operator, Petronas Carigali.
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 1 January 2023.
The BDO PSC was signed in 2012 and amended in 2016 and 2019 to extend the life and increase the recovery of the Baram Delta. The SK307 PSC was signed in 1997.
Following completion of the divestment, Shell holds 19 PSCs in Malaysia.
Last September, Shell announced investment in Rosmari-Marjoram in Sarawak, Malaysia. Rosmari‑Marjoram is a natural gas project which will be developed with Sarawak Shell Berhad (80% and operator) and Petronas (20%).