Shell signs SPA for sale of its equity interest in the North Sabah EOR Production Sharing Contract in Malaysia to SEA Hibiscus Sendirian Berhad
Oct 12, 2016
Kuala Lumpur, 12 October 2016. Shell has reached an agreement with SEA Hibiscus Sendirian Berhad, an indirect wholly owned subsidiary of Hibiscus Petroleum Berhad, for the sale of its 50% equity interest in the 2011 North Sabah EOR Production Sharing Contract (PSC) in Malaysia for USD 25 million (excluding post completion adjustments and reimbursements to Shell).
Currently, Sabah Shell Petroleum Company (25%) is the operator, partnering with Shell Sabah Selatan (25%) and PETRONAS Carigali Sdn Bhd (50%) in the said PSC, which encompasses the Labuan Crude Oil Terminal (LCOT), and the fields of St Joseph, South Furious, SF30 and Barton, all located offshore Sabah, Malaysia. Total oil production (on a 100% PSC basis) averaged 18kbbls / day in 2015.
The transaction is expected to complete in 2017, subject to obtaining PETRONAS and partner approval. With the completion, the SEA Hibiscus Sendirian Berhad will have a 50% equity stake and operatorship of the PSC and its assets.
This transaction is part of Shell’s review of its Upstream portfolio, to focus on acreage positions that hold or can reach the scale required by Shell.
Malaysia continues to be an important country for Shell. Shell’s Sabah portfolio is contributing significantly to Malaysia’s economy through deep-water projects like Gumusut-Kakap and Malikai. Shell continues to bring in significant foreign direct investment and transfer of technology into the country to nurture and develop local capability to unlock Malaysia’s deep-water potential.
Shell is also the leading retail fuels and lubricants provider and continues to invest in growing these businesses in the country.
For further media enquiries, contact Shell Malaysia Media Relations:
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