Sarawak Shell has agreed to sell its stake in two offshore production sharing contracts in the Baram Delta to Petroleum Sarawak Exploration & Production. The sale concerns non-operated interests of 40% in the Amended 2011 Baram Delta EOR Production Sharing Contract and 50% in the SK 307 Production Sharing Contract. The remaining interests in both PSCs are held by the operator, PETRONAS Carigali Sdn. Bhd. (“PCSB”). The base consideration for the sale is USD 475 million, with additional payments of up to USD 50 million between 2023 to 2024 contingent on commodity prices. The transaction has an effective date of January 1, 2023, and is targeted to be completed in early 2023, subject to completion of conditions which include, among others, regulatory approval to be obtained from PETRONAS, and consent from PCSB. Shell retains a strong presence in Malaysia’s upstream, gas-to-liquids, downstream and business services sectors. The intention to divest its interests in the BDO PSC and SK307 PSC was announced by Shell in March 2021.