Shell Malaysia upstream operating company Sarawak Shell Bhd and partner Petronas Carigali Sdn Bhd today announced the signing of two new exploration and production sharing contracts (PSCs) with Petronas.
The contracts represent new Malaysian acreage for the multinational company.
In a statement today, Shell said its minimum financial commitment for activities in two blocks, both offshore Sarawak, would be in the region of US$145 million over the next four years.
"These new contracts underpin Shell’s commitment to Malaysia where the company already invests an average of around US$1 billion annually," it added.
Under the agreement, Shell would undertake an aggressive drilling campaign to comprehensively explore an area totaling an estimated 9,000 square kilometers in the two blocks over the respective exploration periods.
"Shell is operator and has an 85 percent interest in both contracts with Carigali holding the remaining 15 per cent," it added.
Shell Malaysia chairman and managing director of Sarawak Shell, Anuar Taib said :"We are pleased to continue to be a partner in Malaysia’s progress by helping to meet the country’s aspiration to sustain oil and gas production through intensifying our exploration activities.
"We thank Petronas for their continued confidence in us through the award of these blocks, and I look forward to using our global technology and expertise in a successful exploration campaign here."
- Bernama
