The companies have signed a Heads of Agreement (HOA) for two 30-year production sharing contracts (PSCs) for enhanced oil recovery projects off Sarawak and Sabah states in Malaysia.
The work will be carried out by the companies in stages to extend the life and increase the recovery factor of the Baram Delta (BDO) and North Sabah fields.
The improvement in the recovery efficiency of the oil fields may result in an additional 90,000 to 100,000 boe/d of oil production and extend the field life to beyond 2040.
Shell said that the new agreement will build upon the existing BDO and North Sabah PSCs, located offshore Sarawak and Sabah, respectively.
Petronas Carigali operates the BDO production sharing contract (expiry 2018) with a 60% equity interest, while Shell holds the remaining 40% interest.
Shell operates the North Sabah PSC (expiry 2019) with each company holding an equal 50% interest.
