Shell & PETRONAS sign BARDEGG2 HOA

With the signing of the Heads of Agreement (HOA) for Baram Delta Gas Gathering Project 2 (BARDEGG2), associated and non-associated gas rights linked with the Baram Delta Operations will be incorporated into the 2011 Baram Delta EOR PSC. The Tukau Timur field, previously part of the SK307 PSC, will also be integrated into the 2011 Baram Delta EOR PSC enabling non-associated gas to be developed as part of a single integrated development project. With the expansion of the 2011 Baram Delta EOR PSC, Shell and PETRONAS Carigali will gain access to gas rights not previously included under the 2011 Baram Delta EOR PSC.

The signing of the Heads of the Agreement was held on Tuesday June 24th, 2014 with the management teams from Shell, PETRONAS and PETRONAS Carigali Sdn Bhd in attendance.

BARDEGG2 and Baronia EOR projects will be undertaken as a single integrated development project that is operated by PETRONAS Carigali Sdn Bhd.  The projects will see a new central processing platform located at the Baronia field which will initially extract non-associated gas from the Baronia field and together with the existing associated gas production will be used for re-injection together with water into the Baronia reservoir to enhance oil recovery. Excess gas and Tukau Timur gas will be sold to PETRONAS for domestic supply in Bintulu and Miri, and for export to the Bintulu PETRONAS Malaysia LNG complex.

Iain Lo, Chairman Shell Malaysia said, “Malaysia is important to Shell and we thank PETRONAS for the opportunity to participate in this development.”

Background

PETRONAS Carigali holds a 60 per cent equity interest in the 2011 Baram Delta EOR production sharing contract and is operator, with Sarawak Shell Berhad holding the remaining 40 per cent equity interest. The 2011 Baram Delta EOR PSC was signed in 2012, to extend the life and increase the recovery factor of the Baram Delta. The 2011 Baram Delta EOR PSC comprises the Bokor, Bakau, Baram, Baronia, Betty, Fairley Baram, Siwa, Tukau and West Lutong oil fields. 

Enquiries:

Shell Malaysia Media Relations

SM-Corporate-Affairs@shell.com

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.

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