Page 10 - AsianOil Week 50 2022

AsianOil SOUTHEAST ASIA AsianOil

Shell divests stakes in two

Malaysian PSCs

INVESTMENT SHELL announced this week that it would divest 40% and 50% stake in the Baram Delta EOR and
two production-sharing contracts (PSCs) off the SK 307 PSCs respectively.
Malaysia remains a coast of Malaysia for $475mn to Petroleum Sar- The remaining shares in the PSCs are con-
core country for the awak E&P, in order to improve the competitive- trolled by their operator, Petronas Carigali,
company, however. ness of its upstream business. the upstream arm of Malaysia’s state-owned
The Anglo-Dutch major revealed it was Petronas.
searching for a buyer for the interests in March The amended PSC in 2011 for Baram Delta
last year. Under the deal with Petroleum Sar- EOR was signed in 2016, and was aimed at
awak, the company will receive extra payments extending the life and increasing the recovery
of up to $50mn between 2023 and 2024 depend- factor of the Baram Delta, which comprises
ing on oil and gas prices, it said. The transaction the Bokor, Baronia, Fairley Baram, Bakau and
is set to be completed early next year but will be Siwa oilfields and Tukau Timur and Baronia
backdated to January 1. gas fields. The SK 307 PSC was signed in 1997
“This decision is in line with our work to and contains the producing Baronia Barat
continue focusing our portfolio," said Zoe oilfield.
Yujnovich, Shell's upstream director. "Malaysia Shell currently has 19 PSCs in Malaysia,
remains one of our eight core upstream positions including four it signed earlier this year for
worldwide and we will continue to help power blocks offered up in the 2021 bidding round.
the country's progress by investing in the oil and The company is also moving forward with the
gas needed today, as well as in the transition to a Rosmari-Marjoram sour gas development off
low-carbon energy system." the coast of Sarawak, where it took a final invest-
Sarawak Shell Berhad, a unit of Shell, holds a ment decision in September. ™

Bunkering fuel sales

soar in Singapore

PIPELINES & MARINE fuel sales in Singapore soared to a the last month due to lower delivered prices,’
TRANSPORT 22-month high in November, as lower prices Ivan Mathews, head of FGE’s Asia Refining and
spurred increased demand at the world’s largest Global Fuel Oil Service, told Reuters.
Fuek sales were up 3% hub for bunkering. Low-sulphur sales could grow again this
month on month and Fuel sales last month came to 4.37mn tonnes, month, as prices in Singapore have become even
up 4% year on year. up 3% month on month and up 4% year on year, more competitive in contrast to other regional
data published by Singapore’s Maritime and Port ports like Zhoushan, he added.
Authority showed. Bunker fuel prices for 0.5% low-sulphur fuel
Sales increased despite less vessels arriving for oil on a delivered basis fell last month in line with
bunkering, with the number falling 4% month a drop in crude oil prices.
on month to 3,299, although they were up 3% In other news in Singapore, the Energy Mar-
year on year. Marine fuel prices dropped in ket Authority and the Maritime and Port Author-
November, prompting some shippers to secure ity invited expressions of interest to develop low
bigger volumes, according to Reuters. or zero-carbon power generation and bunker-
“Lower cargo prices might have incentivised ing solutions earlier this month. Those fuels will
some bigger purchases for storage as inventory include hydrogen and ammonia. ™
on the ships’ tankers,” Reuters quoted a bunker-
ing manager as saying.
Low-sulphur marine fuel oil sales were up
6% month on month at 2.75mn tonnes, despite
high-sulphur fuel oil sales dropping 5% to
1.25mn tonnes.
“Vessels without scrubbers opportunisti-
cally increased bunker purchase volumes in

P10 www. NEWSBASE .com Week 50 16•December•2022