Petronas & Shell Sign PSC for Sarawak Acreage

Petronas Carigali and Shell have signed a production sharing agreement for acreage in the Baram Delta area offshore Sarawak following the expiration of the PSC awarded in 1988.

Petronas Carigali holds a 60 percent equity interest in the new PSC and continues as the operator while Sarawak Shell holds the remaining 40 percent interest.

The PSC covers the Delta's Bakau, Baram, Baronia, Betty, Bokor, Fairley Baram, West Lutong, Tukau and Siwa oil fields. In addition, three undeveloped small nearby discoveries namely Baronia Timur Laut, Fatimah and Tanjung Baram will also come under the PSC terms to take advantage of the close proximity and the existence of oil and gas infrastructure in the area.

Under the new PSC, Sarawak Shell will deploy cutting edge technologies and worldwide experience to increase oil field recovery factors as well as to extend the life of the aging oil and gas facilities in the Baram Delta. These work commitments and new investments will add significant oil reserves and increase oil production capacity in the Baram Delta. It will also provide the opportunity for Petronas to acquire the necessary knowledge and ensure effective transfer of technology.