Shell sells stake in Baram Delta for $475 mn

By Editor


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.

Shell has 40 percent interest in the Amended 2011 Baram Delta EOR Production Sharing Contract (BDO PSC) and 50 percent in the SK 307 Production Sharing Contract. PETRONAS Carigali owns the remaining interests in both PSCs.

Shell will receive the base consideration of $475 million, with additional payments of up to $50 million between 2023 to 2024 contingent on commodity prices. The transaction is targeted to be completed in early 2023.

“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.”

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