Royal Dutch Shell to sell non-operated interests in Malaysia

The base consideration for the sale is US$475 million, with additional payments of up to US$50 million between 2023 to 2024 contingent on commodity prices. The transaction has an effective date of January 1, 2023, and is targeted to be completed in early 2023, subject to completion of conditions which include, among others, regulatory approval to be obtained from PETRONAS, and consent from PCSB.

“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.”

Shell retains a strong presence in Malaysia’s upstream, gas-to-liquids, downstream and business services sectors. The intention to divest its interests in the BDO PSC and SK307 PSC was announced by Shell in March 2021.

Notes to editors
BDO PSC: PCSB (Operator) holds a 60% equity interest in the BDO PSC, with SSB holding the remaining 40% equity interest.
The BDO PSC was signed in 2012 and amended in 2016 and 2019, to extend the life and increase the recovery of the Baram Delta.
SK307 PSC: PCSB (Operator) holds a 50% equity interest in the SK307 PSC, with SSB holding the remaining 50% equity interest.
The SK307 PSC was signed in 1997.
Shell currently has 19 Production Sharing Contracts (PSCs) in Malaysia.
Shell signed four exploration PSCs earlier this year, arising from PETRONAS’ Malaysia Bid Round in 2021, which was concluded this year.
On September 5, 2022, Shell announced investment in Rosmari-Marjoram in Sarawak, Malaysia. Rosmari-Marjoram is a natural gas project which will be developed with SSB (Operator, 80%) and PCSB (20%).