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, Shell Malaysia said in a statement yesterday.
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 would gain access to gas rights not previously included under the 2011 Baram Delta EOR PSC, it said.
The signing of the HOA was held on June 24, 2014 with the management teams from Shell, Petronas and Petronas Carigali.
Petronas Carigali holds a 60% equity interest in the 2011 Baram Delta EOR production sharing contract and is operator, with Sarawak Shell Bhd holding the remaining 40% equity interest.
BARDEGG2 and Baronia EOR projects will be undertaken as a single integrated development project that is operated by Petronas Carigali.
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.
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 would be sold to Petronas for domestic supply in Bintulu and Miri, and for export to the Bintulu Petronas Malaysia LNG complex, it added.