KUALA LUMPUR (Jan 16): Petroliam Nasional Bhd (Petronas) and Shell Malaysia will commit US$12 billion (RM37.80 billion) over 30 years for two enhanced oil recovery (EOR) projects offshore of Sarawak and Sabah, starting January 2011.
Petronas said on Monday it had production sharing contracts (PSC) for the two EOR offshore of Sarawak and Sabah to Shell Malaysia and its own unit, Petronas Carigali Sdn Bhd.
The national oil company said the awarding of the contracts were after they had signed the heads of agreement in November 2011 to build upon two existing PSCs for oil fields in the Baram Delta area off Sarawak and the north Sabah development area.
Petronas said that oil was earlier produced using mainly primary and secondary techniques. But under the new EOR PSCs, Shell Malaysis and Petronas Carigali would use the EOR or other techniques to further develop nine oil fields in the Baram delta and four oil fields in the north Sabah development area.
To recap, Petronas Carigali (which is the operator) has a 60% stake in the Baram delta EOR PSC while Shell Malaysia holds the other 40%. As for the north Sabah EOR PSC, they each own a 50:50 interest.
Petronas said the partners’ financial commitment for the two EOR projects would amount to US$12 billion over 30 years.
“The EOR projects are expected to recover more than 750 million barrels of oil from the two PSC areas,” it said.
Petronas said on Monday it had production sharing contracts (PSC) for the two EOR offshore of Sarawak and Sabah to Shell Malaysia and its own unit, Petronas Carigali Sdn Bhd.
The national oil company said the awarding of the contracts were after they had signed the heads of agreement in November 2011 to build upon two existing PSCs for oil fields in the Baram Delta area off Sarawak and the north Sabah development area.
Petronas said that oil was earlier produced using mainly primary and secondary techniques. But under the new EOR PSCs, Shell Malaysis and Petronas Carigali would use the EOR or other techniques to further develop nine oil fields in the Baram delta and four oil fields in the north Sabah development area.
To recap, Petronas Carigali (which is the operator) has a 60% stake in the Baram delta EOR PSC while Shell Malaysia holds the other 40%. As for the north Sabah EOR PSC, they each own a 50:50 interest.
Petronas said the partners’ financial commitment for the two EOR projects would amount to US$12 billion over 30 years.
“The EOR projects are expected to recover more than 750 million barrels of oil from the two PSC areas,” it said.
