Shell Upstream Overseas Services Ltd (SUOS) a subsidiary of Shell plc, has agreed to sell its participating interest in Indonesia’s Masela Production Sharing Contract to Indonesia’s PT Pertamina Hulu Energi and PETRONAS. The sale concerns SUOS’ participating interest of 35% in the Masela PSC, which includes the Abadi gas project.
The base consideration for the sale is US$325 million in cash with an additional contingent amount of US$325 million to be paid when the final investment decision (FID) is taken on the Abadi gas project. The transaction has an effective date of January 1, 2023 and is targeted to be completed in 3Q23, subject to completion of conditions, which include among others, regulatory approval to be obtained from the Indonesia’s Ministry of Energy and mineral resources.
Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, said: “The decision to sell our participation in the Masela PSC is in line with our focus on disciplined capital allocation. We wish to thank all stakeholders, especially the Government of Indonesia for their support throughout the sales process. Shell remains active in Indonesia and continues to contribute to the country’s energy transition journey.”
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/25072023/shell-to-sell-interest-in-indonesian-block/