April 13, 2012

Sarawak Shell and Petronas Carigali Sign New Contracts With Petronas

Reported by Bernama News on 12/04/2012, Shell Malaysia upstream operating company Sarawak Shell Bhd and partner Petronas Carigali Sdn Bhd  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, Shell Malaysia said the PSCs were for blocks 2B and SK318, both offshore Sarawak. Under the agreement, Shell would undertake an aggressive drilling campaign to comprehensively explore an area totalling an estimated 9,000 square kilometres in the two blocks over the respective exploration periods.

“Shell's minimum financial commitment for activities in the two blocks will 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 said.

"Shell is operator and has an 85 per cent interest in both contracts with Carigali holding the remaining 15 per cent," it added.

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