Page 7 - AsianOil Week 30 2021

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Shell has a long history in Malaysia, with the The Sarawak government has made it clear
company’s first endeavours in the country dat- that it sees oil and gas revenue as key to the state’s
ing back to 1891. As such, it makes sense that the economic development. Indeed, Kuching has
super-major would be entrusted by both Petro- estimated that the state’s economy will have to
nas and Petros to oversee a project. grow by least 6% per year for Sarawak to become
Petronas’ senior vice-president of domes- a developed economy by 2030.
tic petroleum management, Mohamed Firouz Both Petronas and Petros want to explore the
Asnan, said: “During its 130 years in Malaysia, country’s offshore potential further and, while
Shell and other partners have built a legacy of Shell has said it is looking to trim its portfolio
milestones that contribute to the success of the of non-operated assets, its decision to take point
country’s oil and gas industry.” on SK437 indicates a continued interest in the
Not only does Shell have the pockets and Malaysian upstream.
expertise needed to exploit the acreage on its Reuters reported last week that Shell had
own, but the developer is not weighed down by launched the sale of its 40% and 50% respective
the political baggage attached to Petronas. stakes in the non-operated Baram Delta EOR
The Sarawak government has previously and the SK307 production-sharing contracts
railed against the national oil company’s (NOC) (PSCs) offshore Malaysia. The newswire said
unilateral control over the state’s oil and gas investment bank JP Morgan was handling the
resources. As such, handing the development divestment process. The PSCs are estimated to
reins for the two state companies’ first project hold 230mn barrels of oil equivalent as of 2021,
offshore together to an experienced, independ- while production is projected to reach 35,000
ent third party is a smart move both politically boe per day in 2022 and 44,000 boepd in 2023.
and operationally speaking. Petronas’ Asnan, meanwhile, said he hoped
the new partnership in SK437 would “bring the
New opportunities industry to greater heights”.
The move also benefits Shell, with the super-ma- He said: “Indeed, this new award is a further
jor able to get a head start on its international testament of Malaysia’s attractiveness as a global
peers in terms of developing ties with Malaysia’s investment destination. Under our ‘right asset,
newest state-backed developer and regulator. right player’ strategy, supported by a progressive
In addition to onshore auctions, Kuching fiscal regime, we hope to unlock the full potential
now has complete control of the state’s nat- of the hydrocarbon resources in Malaysia.”
ural gas distribution sector. Kuala Lumpur The executive then urged other potential
revealed in April that Sarawak would assume foreign investors to participate in the Malaysia
control and management of the state’s gas dis- Bid Round 2021, the bid deadline for which is
tribution from June 1. September 3.™

Week 30 29•July•2021 www. NEWSBASE .com P7