UPDATE 1-Shell and UAE's Mubadala swap Malaysian offshore field stakes

Sun Jan 19, 2014 3:49pm IST

Stocks

   

DUBAI Jan 19 (Reuters) - Royal Dutch Shell and Mubadala Petroleum have swapped equity stakes in two exploration blocks off Malaysia, the companies said on Sunday.

Mubadala has taken a 20 percent interest in the Shell-operated deepwater Block 2B and Shell has taken a 20 percent interest in the Mubadala-operated Block SK320 in return.

"The equity swap agreement is an important step for Mubadala Petroleum's growth strategy in Malaysia and marks our first partnership in Southeast Asia with Shell, an important player in deepwater exploration," Maurizio La Noce, chief executive of Mubadala Petroleum, said in a statement.

Mubadala, owned by the Abu Dhabi government, said that drilling in Block SK320 had yielded two new gas discoveries, called Pegaga and Sintok.

"We need to do further work to determine the full extent and commerciality of those discoveries," La Noce said.

Anglo-Dutch energy giant Shell is the operator for 13 production sharing contracts (PSCs) in Malaysia and has stakes in five others. Output from these PSCs accounted for nearly half of Malaysia's total gas production in 2013, Shell said in a statement.

Mubadala was awarded its acreage in 2010 and the adjacent Block 2B was awarded to Shell in 2012.

State-run Malaysian oil and gas company Petronas is a participant in both blocks, which lie off the coast of the island of Borneo.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Tobacco Control

Tobacco Control

India moves toward ban on loose cigarettes to deter smoking   Full Article 

Modi at SAARC

Modi at SAARC

Modi gives Buddha a miss as SAARC leaders flock to Nepal.  Full Article 

Reuters Insight

Reuters Insight

In Modi’s India, green shoots of reform from Rajasthan.  Full Article 

Investing in ETFs

Investing in ETFs

U.S. investors elevate India over other emerging markets  Full Article 

J&K Elections

J&K Elections

Kashmiris turn out to vote as BJP bids for power  Full Article 

Trade Talks

Trade Talks

India, U.S. hold first trade dialogue in four years  Full Article 

Modi's Wife

Modi's Wife

Modi's estranged wife unhappy over round-the-clock security  Full Article 

Global Economy

Global Economy

OECD sees gradual world recovery, urges ECB to do more  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage