Shell PLC said Tuesday that it will sell its stake in two offshore production contracts in Malaysia’s Baram Delta to Petroleum Sarawak Exploration & Production Sdn. Bhd. for a base consideration of $475 million.
The energy giant said it will sell the 40%, non-operated interest in the Amended 2011 Baram Delta EOR production sharing contract, and 50% in the SK 307 production sharing contract, with the remaining stakes both held by operator Petronas Carigali Sdn. Bhd.
The transaction is expected to complete in early 2023, with additional payments of up to $50 million between 2023 and 2024 depending on commodity prices. The transaction is subject to conditions including, among others, regulatory approval.
“Malaysia remains one of our eight core upstream positions worldwide and we will continue to help power the country’s progress by investing in the oil and gas needed today, as well as in the transition to a low-carbon energy system,” said Zoe Yujnovich, Shell’s upstream director.
The company had said it intends to divest its interests in the two contracts in March 2021.