Shell Malaysia Signs New Exploration Contract
Nov 27, 2012
Shell Malaysia today announced the signing of a new production sharing contract (PSC) with PETRONAS to explore for oil and gas offshore Sarawak.
The SK319 PSC will see Shell undertake an initial 3 year exploration program to comprehensively explore an area totalling 2727 square kilometres within block SK319 in Central Luconia, offshore Sarawak. Sarawak Shell Berhad is the operator and will partner PETRONAS Carigali with a 50:50 participating equity split.
The new PSC forms part of Shell’s Low Cost Exploration & Development (LCD) focus that will allow the company to carry out a multi-well exploration campaign to further explore and de-risk the mature carbonate pinnacle play in Central Luconia.
Iain Lo, Shell Malaysia Chairman and Managing Director of Sarawak Shell Berhad commented, “The successful execution of this new PSC and Joint Operating Agreement (JOA) marks another important milestone for Shell in Malaysia after the signing of the SK318 and 2B exploration contracts for offshore Sarawak earlier this year. This is the third operated exploration PSC that Shell Malaysia has signed in 2012 and adds to Shell’s growing exploration position in Malaysia."
As production sharing contract operator to PETRONAS, Shell is the largest gas producer in Malaysia, accounting for 60% of Malaysia’s gas production. Ninety percent of the gas produced is earmarked for the PETRONAS LNG complex in Bintulu.
Norhayati Sulaiman-Adzhar, Media Relations (Malaysia)
Tel : +603 2091 3795
ABOUT SHELL MALAYSIA EXPLORATION & PRODUCTION
Operating as production sharing contractors to PETRONAS, Shell Malaysia’s exploration and production companies are engaged in the exploration for and efficient development and extraction of crude oil and natural gas from offshore Sarawak and Sabah, with onshore operations and offices in Miri, Kota Kinabalu, Labuan, Bintulu and Kuala Lumpur. Shell also builds and operates the infrastructure needed to deliver hydrocarbons to market.
The pioneer of Malaysia's exploration and production sector, Shell drilled Malaysia’s first commercial oil well in Miri, Sarawak in 1910. The company’s upstream base is still located in Miri after a century of operations.
DEFINITIONS & CAUTIONARY NOTE:
Resources: Our use of the term “resources” in this announcement includes quantities of oil and gas not yet classified as Securities and Exchange Commission of the United States ("SEC") proved oil and gas reserves or SEC proven mining reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this announcement "Shell", "Shell Group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. "Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in this announcement refer to companies in which Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this announcement, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 23 per cent shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Shell and the Shell Group to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward looking statements are identified by their use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including regulatory measures addressing climate change; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward looking statements contained in this announcement are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward looking statements. Additional factors that may affect future results are contained in Shell's 20-F for the year ended 31 December 2011 (available at www.shell.com/investor and www.sec.gov). These factors also should be considered by the reader. Each forward looking statement speaks only as of the date of this announcement, 20 November 2012. Neither Shell nor any of its subsidiaries nor the Shell Group undertake any obligation to publicly update or revise any forward looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward looking statements contained in this announcement.
Shell may have used certain terms, such as resources, in this announcement that the SEC strictly prohibits Shell from including in its filings with the SEC. U.S. investors are urged to consider closely the disclosure in Shell's Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.