Shell To Sell Nonoperated Interests in Malaysia’s Baram Delta

Two PSCs have been sold to PSEP for $475 million.

 Indonesia Map
Getty Images

Sarawak Shell Berhad, a subsidiary of Shell, has agreed to sell its stake in two offshore production-sharing contracts (PSC) in the Baram Delta to Petroleum Sarawak Exploration & Production for $475 million. The sale includes nonoperated interests of 40% in the Amended 2011 Baram Delta EOR PSC and 50% in the SK307 PSC. The remaining interests in both PSCs are held by the operator Petronas.

In addition to the $475 million base price, payments of up to $50 million between 2023 to 2024 are contingent on commodity prices. The transaction has an effective date of 1 January 2023 and is targeted to be completed in early 2023. The deal is subject to completion of conditions which include, among others, regulatory approval to be obtained from Petronas.

Shell retains a strong presence in Malaysia’s upstream, gas-to-liquids, downstream, and business services sectors. Shell announced its intention to divest its interests in the pair of PSCs in March 2021.