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.

Telecom

Reuters Showcase

Insurance Bill

Insurance Bill

Opposition support bolsters prospects for insurance reforms  Full Article 

SBI Share Sale

SBI Share Sale

SBI's up to $2.4 billion share sale likely by end April - sources   Full Article 

Eicher Share Sale

Eicher Share Sale

Truck maker Volvo sells shares in Eicher Motors  Full Article 

Beef Ban

Beef Ban

After beef ban, Hindu groups force abattoirs to close   Full Article 

Monsoon Season

Monsoon Season

Exclusive - India expects better monsoon rains this year  Full Article 

Services Growth

Services Growth

Services growth at eight-month high in Feb - HSBC PMI  Full Article 

'India's Daughter'

'India's Daughter'

Documentary on 2012 Delhi gang rape banned in India  Full Article 

Capex Slashed

Capex Slashed

Cairn India slashes 2015-16 capex on falling crude   Full Article 

Reuters India Mobile

Reuters India Mobile

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