25th Jul 2023 06:58
(Alliance News) - Shell PLC on Tuesday said it will receive up to USD650 million for its 35% interest in an Indonesian gas project.
Shell Upstream Overseas Services (I) Ltd, a Shell subsidiary, will sell its participating interest in the Masela production sharing contract to Indonesia's PT Pertamina Hulu Energi and Petronas Masela Sdn Bhd, part of Malaysia's Petroliam Nasional Bhd, known as Petronas.
The PSC includes the Abadi gas project located in the Masela block, offshore Saumlaki in Maluku province, Indonesia. Japan's Inpex Corp holds the other 65% of the Masela PSC and is the operator of Abadi.
Shell had bought into the project in 2011, and said on Tuesday the disposal was part of its "focus on disciplined capital allocation".
"Shell remains active in Indonesia and continues to contribute to the country's energy transition journey," said Director of Integrated Gas & Upstream Zoe Yujnovich.
Shell will receive USD325 million in cash as a base consideration, with an additional USD325 million due when the final investment decision is taken on the Abadi gas project. The sale is expected to be completed in this quarter and needs approval from the Indonesia Ministry of Energy & Mineral Resources.
Shell shares closed down 0.4% at 2,408.50 pence in London on Monday. Inpex was up 2.9% at JPY1,840.00 in Tokyo late Tuesday afternoon.
By Tom Waite, Alliance News editor
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