Shell has signed a strategic agreement with Petronas, a firm engaged in separating natural gas into its components, to strengthen their gas asset positions in Malaysia and Australia.
Under the agreement, Petronas’s subsidiary Petronas Carigali seeks to secure a 25% interest in Australia’s NT/P48 Permit, which includes the Evans Shoal joint venture in the Timor Sea offshore Australia’s Northern Territory.
The new equity structure for the joint venture will be Shell Development Australia (SDA) 25%; Petronas Carigali 25%; Santos 40%; and Osaka Gas 10%. Santos will remain operator in the joint venture. The participation of Petronas is expected to strengthen the Evans Shoal joint venture’s ability to take this asset forward.
Chris Gunner, COO of SDA, said: We believe that Petronas, a company with strong LNG supply reliability and marketing credentials, will be a valuable participant in the Evans Shoal JV.