Mubadala, Shell to swap equity in two Malaysia blocks

Mubadala Petroleum has signed an agreement with Shell to swap equity in two exploration blocks offshore Malaysia, in which Mubadala will gain a 20% interest in deepwater Block 2B, while Shell will gain a 20% interest in Block SK320. The equity swap agreement marks Mubadala’s first partnership in Southeast Asia with Shell.

Shell operates deepwater Block 2B, and Mubadala operates Block SK320. Petronas participates in both blocks. Block SK320 was awarded to Mubadala and Petronas in 2010 and contains the M5 discovery. Deepwater Block 2B is adjacent to Block SK320 and was awarded to Shell and Petronas in 2012.

The current exploration drilling campaign in Block SK320 has yielded two new gas discoveries, Pegaga and Sintok, to add to the existing M5 discovery.

The Sintok-1 well has been drilled to a depth of 2,775 m (9,104 ft) into the main target reservoir, penetrating a 290-m (951-ft) gas-bearing carbonate reservoir. Sintok-1 will be plugged and abandoned as planned, after which a third prospect, Sirih, will be drilled, adjacent to Sintok. Additional drilling is planned to appraise the extent of the Pegaga discovery.

 

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