Malaysia's Petronas signs US$12-B offshore Crude Oil deal with Shell
Malaysia's state-owned oil giant Petronas (KL:5183) signed a 37.7-B Ringgit (US$12-B) deal with Shell (NYSE:RDS-A) in the World's biggest offshore enhanced Crude Oil recovery (EOR) project on Monday. The deal, which includes two EOR offshore projects in Malaysia' s Sarawak and Sabah states in the East Peninsula, will see Shell Malaysia and Petronas Carigali developing 9 oilfields in the Baram Delta and 4 in the North Sabah development area with EOR or other technologies over 30 yrs.
Enhanced Oil Recovery refers to techniques for increasing the amount of Crude Oil that can be extracted from an Oil field.
The projects are expected unlock significant remaining reserves in the two areas, recovering more than 750-M bbls of Crude Oil while providing the Petronas with access to considerable skills, knowledge and resources, the oil company said in a statement.
Malaysia's Prime Minister Najib Razak said after the signing ceremony that the project may increase the average recovery factor in the 2 areas from around 36 to 50%.
If realized, the technology will also be able to extend the field's life to beyond Y 2040, he said.
Najib said the improvement in the recovery efficiency of the Oil field is expected to positively impact Malaysia's Oil reserves and benefit the Country as a whole.
Petronas President and Chief Executive Officer Shamsul Azhar Abbas said the Company is confident of unlocking significant volumes of the remaining hydrocarbons. This will enable us not only to realize further value from these fields but also contribute to the sustainability of national Crude Oil production, he said.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.