Shell negotiates offshore Sabah PSC transfer to Hibiscus

Offshore staff

KUALA LUMPUR, Malaysia – Hibiscus Petroleum subsidiary SEA Hibiscus has entered into a conditional sale and purchase agreement with Sabah Shell Petroleum Co. and Shell Sabah Selatan.

This involves acquiring Shell’s 50% operated interest in the 2011 North Sabah enhanced oil recovery production-sharing contract (PSC) for $25 million, excluding post completion adjustments and other reimbursements.

Assuming Malaysian regulatory approvals, SEA Hibiscus would take over operatorship, probably in 2017. The other 50% partner is Petronas Carigali.

The PSC comprises four offshore producing oil fields along the Sabah coast – St Joseph, South Furious, SF30, and Barton – associated production and pipeline infrastructure, and the Labuan crude oil terminal.

Last year oil production averaged around 18,000 b/d. The PSC provides long-term production rights until 2040 with various future development opportunities already identified.

10/17/2016

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...