Anglo-Dutch supermajor Shell has reportedly launched the sale of its non-operated upstream assets offshore Malaysia some four months after revealing it was mulling the divestment.
Up for grabs are Shell’s stakes in the Amended 2011 Baram Delta enhanced oil recovery production sharing contract and the Block SK 307 PSC, both offshore Sarawak and both of which are operated by national E&P player Petronas Carigali.
The sale process for the two interests, which was launched in July, is said to be being handled by JP Morgan, according to the sales document seen by Reuters.
Shell’s local division is currently Petronas’ sole co-venturer with a 40% interest in the Baram Delta EOR PSC and a 50% stake in Block SK 307.
The Amended 2011 Baram Delta EOR PSC, which is home to the Bokor, Baronia, Bakau and Siwa oilfields and the Tukau Timur gas field, was signed five years ago with the aim of extending the life and increasing the recovery factor of these assets.
Block SK 307 hosts the producing Baronia Barat (West Baronia) oilfield.
Credible buyer sought
“Shell Malaysia remains committed to supporting the operator [Petronas] in delivering safe and smooth operations until completion of a sale to a credible buyer," Shell said earlier.
"Malaysia remains an important country to the Shell Group with a continued strong presence in its upstream, gas-to-liquids, downstream and business operations sectors.”
Malaysia’s was recently confirmed as one of the company’s nine core global upstream destinations despite it looking to divest these producing assets and also axeing hundreds of local jobs.
Shell, which has had operations in Malaysia for more than a century, said it would continue to play an important role in powering the Southeast Asian nation’s future with "cleaner, innovative and competitive energy solutions".