MELBOURNE, Australia -- Shell Development (Australia) Pty Ltd (SDA) says it has signed a strategic agreement with Malaysia's national oil corporation Petronas to strengthen their gas asset positions in Malaysia and Australia.
Under the agreement, Petronas' upstream subsidiary Petronas Carigali (Australia) Pty. Ltd. seeks to secure a 25% interest in Australia's NT/P48 permit, which includes the Evans Shoal Joint Venture in the Timor Sea.
The agreement, subject to regulatory approvals, would reduce SDA's stake to 25% in the permit offshore Northern Territory.
Santos Ltd. will remain the operator of the joint venture exploiting the permit with its majority 40 percent stake. Japan's Osaka Gas has 10% interest in the permit.
Petronas participation is expected to help proceed with the Evans Shoal LNG project.
Shell is a long-time player in Malaysia's oil and gas industry and currently operates 17 production-sharing contracts, eight of which are gas. Shell is also a 15% partner in Malaysia's LNG exporting plants in Bintulu on Borneo.