UK-based energy giant Shell will begin exploring for new drilling opportunities off the coast of Malaysia, with the geographical survey work expected to be finished by the end of next month.
The Malaysian state-owned energy company Petronas, which also makes the Arbor range of agricultural oil, agreed three contracts relating to sharing production with Shell in March last year. The deals cover exploration of three offshore blocks, the deep-water SB-2W and SB-X blocks offshore of Sabah and the shallower SK439 and SK440 blocks offshore of Sarawak. In a press release at the time, Shell said:
“Our long and successful partnership with PETRONAS in Malaysia continues, as together we seek to provide the energy of today while funding the energy of tomorrow. I look forward to further successful collaboration on growing a sustainable energy industry in Malaysia.”
Shell’s upcoming work will be focussed on the Sarawak SK439 and SK440 blocks, with its partner being Malaysia’s Petroleum Sarawak Exploration and Production (PSEP). Shall has identified several potential wildcat opportunities that could turn out to be suitable for future development.
Shell recently announced its plan to maintain upstream production for longer than previously thought, especially for natural gas production. At the company’s capital market’s day, Shell CEO Wael Sawan said that a balanced energy transition needed investment in oil and gas production to continue. He argued that it was essential to have the future systems for clean energy in place before dismantling the current systems. Fellow UK-based oil major BP also announced similar plans recently.