Petronas buys half of Shell’s stake in Evans Shoal LNG venture in Timor Sea
Posted by gasweek on 4 October, 2007
According to Nigel Wilson, Petronas, the Malaysian government-owned energy group, had bought half of Shell’s stake in the Evans Shoal LNG venture in the Timor Sea, reported The Australian (25/9/2007, p. B25).
Asset swap possible: Announcement that approval from the FIRB was being sought seemed to be the first step in a process that might result in Shell and Petronas swapping more assets. Shell said it had signed a strategic agreement with Petronas for a 25 per cent stake in Northern Territory permit NT/ P48, which includes Evans Shoal, 300km northwest of Darwin. The reservoir was found in 1988 by BHP under a farm-in to WMC but, because of high carbon dioxide levels of about 18 per cent, it was regarded as noncommercial.
Both Petronas and Shell active in both Australia and Malaysia: Proved and probable recoverable dry gas resources in Evans Shoal were currently estimated at about 6.6 trillion cubic feet and 31 million barrels of condensate. Previously Shell held 50 per cent of the permit with Santos (40 per cent and operator) and Osaka Gas (10 per cent). Petronas had been involved in Australia through its shareholding in Australian Pipeline Trust, now APA Group, and the aborted Australian pipeline link of the PNG Gas project. Shell said it was a long-time player in Malaysia’s oil and gas industry with 17 production sharing contracts, eight of which were gas acreage, as well as being a 15 per cent partner in the two Malaysian LNG plants.
The Australian, 25/9/2007, p. B25