Petroleum Sarawak Exploration & Production Sdn. Bhd. (PSEP) has acquired Sarawak Shell Bhd.’s stake in two offshore production sharing contracts (PSC) in Malaysia’s Baram Delta.
PSEP will gain 40% non-operated interests in the Amended 2011 Baram Delta EOR PSC and 50% interest in the SK307 PSC for base consideration of $475 million, with additional payments of up to $50 million contingent on commodity prices.
Remaining interests in both PSCs are held by operator Petronas Carigali Sdn. Bhd.
The Baram Delta EOR PSC comprises Bokor, Baronia, Fairley Baram, Bakau, and Siwa oil fields and Tukau Timur and Baronia gas fields. The SK307 PSC currently produces from Baronia Barat oil field (Online, March 15, 2021).
The transaction is targeted to be completed in early 2023, subject to conditions including consent and regulatory approval from Petronas.