SHELL has agreed to divest some of its Malaysian upstream assets in a $475 million sale to local player Petroleum Sarawak Exploration Production (PSEP). The deal covers Sarawak Shell's non-operated stakes in two offshore production sharing contracts in the Baram Delta - a 40 interest in the Amended 2011 Baram Delta EOR (enhanced oil recovery) PSC and a 50 share in the SK 307 PSC. The remaining interests in both assets are held by the operator, Malaysia's national EP player Petronas Carigali. The base consideration for the sale is $475 million, with additional payments of up to $50 million between 2023 to 2024 contingent on commodity prices. The transaction, which has an effective date of 1 January 2023, is targeted for completion early next year, subject to completion of conditions including regulatory approval from Petronas and consent from Petronas Carigali. It is not known whether Petronas Carigali has pre-emption rights over Shell's planned sale to PSEP. "This decision is in line with our work to continue focusing our portfolio", said Zoe Yujnovich, Shell's upstream director.
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