KUALA LUMPUR: Shell has completed the sale of its equity interest in the North Sabah EOR Production Sharing Contract (PSC) in Malaysia to Hibiscus Petroleum Bhd for US$25 million.
The PSC encompasses the Labuan Crude Oil Terminal (LCOT), and the fields of St Joseph, South Furious, SF30 and Barton, all located offshore Sabah, Malaysia.
With this completion, Hibiscus’ unit, SEA Hibiscus Sendirian Bhd will have a 50 per cent stake and operatorship of the PSC and its assets.
Petronas Carigali Sdn Bhd is a partner with 50 per cent in the said PSC.
Shell said this transaction is part of Shell’s review of its Upstream portfolio, to focus on acreage positions that hold or can reach the scale required by Shell.
“Malaysia continues to be an important country for Shell. Shell’s Sabah portfolio is contributing significantly to Malaysia’s economy through deep-water projects like Gumusut-Kakap and Malikai, and remains committed to further exploration in Malaysia,” it said.
Shell is also the leading retail fuels and lubricants provider and continues to invest in growing these businesses in the country, it added.