Shell to sell non-operated interests in Malaysia’s Baram Delta

Sarawak Shell, a subsidiary of Shell, has agreed to sell its non-operated stake in two offshore production sharing contracts (PSC) in the Baram Delta offshore Malaysia to Petroleum Sarawak Exploration & Production (PSEP) for $475mn, Shell said on December 13.

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. The transaction is expected to be completed in early 2023, Shell said.

"This decision is in line with our work to continue focusing our portfolio", said Zoe Yujnovich, Shell's upstream director. "Malaysia remains one of our eight core upstream positions worldwide and we will continue to help power the country's progress by investing in the oil and gas needed today, as well as in the transition to a low-carbon energy system."

The intention to divest its interests in the two PSCs was announced by Shell in March 2021.