Damon Evans, SINGAPORE: Shell is poised to help Malaysia reverse declining oil production after signing a multi-billion dollar agreement covering two 30-year production sharing contracts (PSCs) with Petronas.
Under the deal, the Anglo-Dutch supermajor and Malaysia’s national oil company will develop enhanced oil-recovery (EOR) projects on the PSC areas. The pact is part of Petronas’s wider efforts to bring on line at least six platform-based water-, gas- and chemical-injection EOR schemes between 2013 and 2015, in a bid to arrest falling output from mature oilfields.
Crude production continued to slide at Petronas’ mature fields during the financial year ending March 2011. Significantly, falling oil output more than offset gains in gas production, resulting in a...