Shell, Mubadala Sign Agreement To Swap Equity
Jan 19, 2014
Shell Malaysia today announced the signing of an agreement with Mubadala Petroleum to swap equity in two exploration blocks offshore Malaysia.
With the swap, Shell gains a 20 per cent interest in the Block SK320 while Mubadala Petroleum a 20 per cent interest in the deepwater Block SK2B. PETRONAS Carigali Sdn Bhd is a participant in both blocks.
Block SK320 was awarded to Mubadala Petroleum and PETRONAS Carigali in 2010 and contains the M5 discovery. Two further discoveries were made during 2013 within Block SK320 - Pegaga and Sintok. Both are subject to further development studies.
Block 2B is adjacent to Block SK320 and was awarded to Shell and PETRONAS Carigali in 2012. Shell is the operator for Block SK2B while Mubadala Petroleum is the operator in Block SK320.
As production sharing contract operator to PETRONAS, Shell is one of the largest gas producers in Malaysia, with operatorship in 13 PSCs and participating interest in 5 other PSCs. Production from these PSCs account for nearly fifty per cent of total Malaysia’s gas production for 2013.
Norhayati Sulaiman-Adzhar, Country Media Relations Manager
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.
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