WEST ARAFURA SEA DEEP WATERS – PETRONAS AND SHELL SIGN SPA

January 05, 2024

PETRONAS’ subsidiary, PETRONAS Masela (PETRONAS Masela) has signed the Sale and Purchase Agreement (SPA) with Shell Upstream Overseas Services for the acquisition of 15 per cent participating interest in the Production Sharing Contract of the Masela Block (Masela PSC), located in the deep waters of west Arafura Sea, Eastern Indonesia. The transaction is currently pending completion subject to regulatory approval and fulfillment of conditions precedent.
The acquisition was part of a joint bidding collaboration between PETRONAS Masela and its partner, PT Pertamina Hulu Energi (PHE) where both entities will acquire Shell’s entire 35 per cent participating interest in the Masela PSC. PHE also signed its SPA with Shell today to take up 20 per cent participating interest. INPEX Masela, the operator of the Masela Block, holds the remaining 65 per cent participating interest.
The project also provides an opportunity for PETRONAS to contribute our technical expertise in the development and monetisation of the block, and will further strengthen our global LNG portfolio towards meeting growing demand for lower-carbon energy from Indonesia and across the region.
(Source: Petronas)