PETRONAS and Shell Sign Heads of Agreement for New Enhanced Oil Recovery Production Sharing Contracts
PETRONAS and Shell Sign Heads of Agreement for New Enhanced Oil Recovery Production Sharing Contracts 11/11/2011 PETRONAS and Shell Malaysia today signed a Heads of Agreement (HOA) for two 30-year production sharing contracts (PSCs) for enhanced oil recovery (EOR) projects offshore Sarawak and Sabah.
The HOA will see staged work activities and new investments from Shell and its joint venture partner PETRONAS Carigali Sdn Bhd (PCSB), to extend the life and increase the recovery factor of the Baram Delta (BDO) and North Sabah fields.
The improvement in the recovery efficiency of the oil fields may result in an additional 90 to 100 kboe/d of oil production and extend the field life to beyond 2040.
Peter Voser, Shell’s CEO, said: “This new agreement confirms Shell’s commitment to continue investing in Malaysia and its position as a heartland for Shell. The agreement also provides an opportunity to work together with PETRONAS on building local knowledge and capabilities in enhanced oil recovery.”
Shell Malaysia Chairman Anuar Taib added, “This development will positively impact Malaysia’s oil reserves and benefit the country as a whole, adding further value to the country’s upstream oil and gas industry. Shell, as a long term partner in Malaysia’s progress, is pleased to be able to continue contributing towards the national aspiration to become a high-income economy.”
The new agreement will build upon the existing BDO and North Sabah production sharing contracts, located offshore Sarawak and Sabah, respectively.
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