Shell mulls sale of certain non-operated Malaysian assets

Shell is exploring options to divest its non-operated interests in the Amended 2011 Baram Delta enhanced oil recovery (EOR) and SK307 production sharing contracts (PSCs) offshore Sarawak.

The (Amended) 2011 Baram Delta EOR PSC comprises Bokor, Baronia, Fairley Baram, Bakau, and Siwa oil fields and Tukau Timur and Baronia gas fields.

The SK307 PSC currently produces from Baronia Barat oil field.

This decision is in line with the Shell’s strategy to focus its upstream business, the company said in a release on the 15^th March.

It will continue upstream, gas-to-liquids, downstream, and business operations sectors in Malaysia. The upstream business in Malaysia has been identified as one of Shell’s nine Core Performance Units worldwide, the company said.

In January, Shell Malaysia noted plans to shed about 2% of its workforce, including 250-300 jobs from its upstream business, as part of an effort to reshape and simplify the organisation.

Petronas Carigali is operator of the Baram Delta EOR project (60%) and SK307 (50%), with Sarawak Shell Bhd holding the remaining interests.

Source: Oil & Gas Journal