Petronas and Shell sign agreement for Malaysian enhanced oil recovery projects
Petronas and Shell Malaysia signed a Heads of Agreement (HoA) for two 30-year production sharing contracts (PSCs) for enhanced oil recovery (EOR) projects offshore Sarawak and Sabah.
The will see staged work activities and new investments from Shell and its joint venture partner Petronas, to extend the life and increase the recovery factor of the Baram Delta (BDO) and North Sabah fields.
The improvement in the recovery efficiency of the oil fields may result in an additional 90,000 to 100,000 boepd of oil production and extend the field life to beyond 2040.
Peter Voser, Shell’s CEO, said: “This new agreement confirms Shell’s commitment to continue investing in Malaysia and its position as a heartland for Shell. The agreement also provides an opportunity to work together with Petronas on building local knowledge and capabilities in enhanced oil recovery.”
The new agreement will build upon the existing BDO and North Sabah production sharing contracts, located offshore Sarawak and Sabah, respectively.