Petronas, Shell consider first-ever field-scale chemical EOR offshore Malaysia

Offshore staff

KUALA LUMPUR, Malaysia – Petronas Carigali and Shell Malaysia have signed a heads of agreement (HOA) concerning enhanced oil recovery (EOR) projects offshore Sarawak and Sabah.

The HOA covers two 30-year duration production sharing contracts, under which the two partners will work to extend the life and increase the recovery factor of the Baram Delta (BDO) and North Sabah fields.

The aims are to increase production by a further 90-100,000 boe/d, and in the process to lift the average recovery factor from 36% to 50% and to extend the fields’ lives beyond 2040. Technology deployed at North Sabah could lead to implementation of the world’s first field-scale offshore chemical EOR process.

The new agreement will build on the existing BDO and North Sabah PSCs off Sarawak and Sabah respectively. Petronas operates the BDO PSC (due to expire in 2018) with a 60% interest, with Shell holding the remaining 40%.

Shell operates the North Sabah PSC (expiry 2019) with a 50% stake, Petronas holding the balance.

Currently Shell has participating interests in 14 PSCs in various offshore blocks in Sarawak and Sabah.

11/11/2011