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EOR projects planned for offshore Malaysia

Petronas Carigali Sdn. Bhd. and Shell Malaysia signed an agreement for two 30-year production-sharing contracts for enhanced oil recovery projects offshore Sarawak and Sabah.

Shell estimates the EOR projects will increase recovery factors to 50% from 36% in the Baram Delta (BDO) and North Sabah fields. It expects to produce an additional 90,000-100,000 boe/d from the projects and estimates that the projects will extend field life beyond 2040.

The technology planned for the North Sabah fields could potentially lead to the first field-scale offshore chemical EOR project in the world, according to Shell.

The new agreement builds on the existing BDO and North Sabah PSCs.

Petronas Carigali holds a 60% interest in the BDO production sharing contract (expiry 2018) and is operator while Shell holds the remaining 40%.

The North Sabah PSC (expiry 2019) is Shell operated with each company holding an equal 50% share.

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