Sarawak Shell Berhad (“SSB”), a subsidiary of Shell plc, has completed the previously announced sale of its stake in two offshore production sharing contracts (PSC) in the Baram Delta to Petroleum Sarawak Exploration & Production Sdn. Bhd. (“PSEP”).
The sale concerns non-operated interests of 40% in the Amended 2011 Baram Delta EOR Production Sharing Contract (“BDO PSC”) and 50% in the SK 307 Production Sharing Contract (“SK307 PSC”). The remaining interests in both PSCs are held by the operator, PETRONAS Carigali Sdn. Bhd. (“PCSB”). Completion of the sale follows regulatory approval from Malaysia Petroleum Management (MPM), PETRONAS as the custodian of national hydrocarbon resources in Malaysia. The transaction has an effective date of January 1, 2023.
This divestment is in line with Shell’s work to focus its Upstream portfolio. Shell retains a strong presence in Malaysia’s upstream, gas-to-liquids, downstream and business services sectors.
- BDO PSC: PCSB (Operator) holds a 60% equity interest in the BDO PSC, with SSB having held the remaining 40% equity interest prior to divestment.
- The BDO PSC was signed in 2012 and amended in 2016 and 2019, to extend the life and increase the recovery of the Baram Delta.
- SK307 PSC: PCSB (Operator) holds a 50% equity interest in the SK307 PSC, with SSB having held the remaining 50% equity interest prior to divestment.
- The SK307 PSC was signed in 1997.
- Following completion of this divestment, Shell holds 19 Production Sharing Contracts (PSCs) in Malaysia.
- On September 5, 2022, Shell announced investment in Rosmari-Marjoram in Sarawak, Malaysia. Rosmari-Marjoram is a natural gas project which will be developed with SSB (Operator, 80%) and PCSB (20%).
Shell’s net carbon intensity
Also, in this announcement we may refer to Shell’s “Net Carbon Intensity”, which includes Shell’s carbon emissions from the production of our energy products, our suppliers’ carbon emissions in supplying energy for that production and our customers’ carbon emissions associated with their use of the energy products we sell. Shell only controls its own emissions. The use of the term Shell’s “Net Carbon Intensity” is for convenience only and not intended to suggest these emissions are those of Shell plc or its subsidiaries.
Shell’s net-Zero Emissions Target
Shell’s operating plan, outlook and budgets are forecasted for a ten-year period and are updated every year. They reflect the current economic environment and what we can reasonably expect to see over the next ten years. Accordingly, they reflect our Scope 1, Scope 2 and Net Carbon Intensity (NCI) targets over the next ten years. However, Shell’s operating plans cannot reflect our 2050 net-zero emissions target and 2035 NCI target, as these targets are currently outside our planning period. In the future, as society moves towards net-zero emissions, we expect Shell’s operating plans to reflect this movement. However, if society is not net zero in 2050, as of today, there would be significant risk that Shell may not meet this target.
For more information, visit www.sec.gov.