Mubadala, Shell to swap equity in Malaysian offshore blocks

With the swap, Shell will gain a 20% interest in the Block SK320 while Mubadala Petroleum a 20% interest in the deepwater Block SK2B.

Petronas Carigali Sdn Bhd is a participant in both blocks.

Additionally, the current exploration drilling campaign in Block SK320 has yielded two new gas discoveries, Pegaga and Sintok, to add to the existing M5 discovery.

Mubadala Petroleum CEO Maurizio La Noce said, "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."

Sintok-1 well was drilled to a depth of 2,775m into the main target reservoir and penetrated a 290m gas-bearing carbonate reservoir.

Block 2B is adjacent to Block SK320 and was awarded to Shell and PETRONAS Carigali in 2012.

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