Royal Dutch Shell PLC has agreed to the purchase by one of its subsidiaries of Total E&P Deep Offshore Borneo BV, which holds an 86.95% interest in exploratory Block CA1 offshore Brunei for $300 million.
The block, more than 100 km offshore, covers 5,850 sq km in 1,000-2,500 m of water. Total is operator. Other interests are Murphy Oil, 8.05%, and Petronas, 5%.
Total, of which the company to be acquired is a wholly owned subsidiary, said the deal is part of a program to sell $5 billion of noncore assets during 2019-20.
Another subsidiary, Total E&P Borneo BV, operates Block B, 50 km offshore, as a 37.5% partner in a joint venture with Shell Deepwater Borneo Ltd., 35%, and PB Expro, 27.5%.
Mahararajalela Jamalulalam field on Block B has produced natural gas and condensate since 1999.