Shell Divests 35 percent Participating Interest in Indonesia’s Masela Gas Project

Shell Divests 35 percent Participating Interest in Indonesia’s Masela Gas Project

(IN BRIEF) Shell plc’s subsidiary, Shell Upstream Overseas Services (I) Limited (“SUOS”), has agreed to sell its 35% participating interest in Indonesia’s Masela Production Sharing Contract (“Masela PSC”) to PT Pertamina Hulu Energi (“PHE”) and PETRONAS Masela Sdn. Bhd (“PETRONAS Masela”). The sale includes the Abadi gas project. The transaction involves a cash consideration of $325 million, with an additional $325 million contingent payment upon the final investment decision (FID) for the Abadi gas project. The sale, effective from January 1, 2023, is expected to be completed in Q3 2023, subject to regulatory approval from Indonesia’s Ministry of Energy and Mineral Resources.

(PRESS RELEASE) LONDON, 25-Jul-2023 — /EuropaWire/ — Shell plc’s subsidiary, Shell Upstream Overseas Services (I) Limited (“SUOS”), has reached an agreement to sell its participating interest in the Masela Production Sharing Contract (“Masela PSC”) in Indonesia. The buyers for the interest are PT Pertamina Hulu Energi (“PHE”) and PETRONAS Masela Sdn. Bhd (“PETRONAS Masela”). The deal includes SUOS’ 35% participating interest in the Masela PSC, encompassing the Abadi gas project.

The transaction’s base consideration is set at $325 million in cash, with an additional contingent amount of $325 million to be paid upon the final investment decision (FID) for the Abadi gas project. The effective date of the sale is January 1, 2023, and it is anticipated to conclude in Q3 2023, subject to meeting conditions, including regulatory approval from Indonesia’s Ministry of Energy and Mineral Resources.

Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director, commented on the divestment, stating, “The decision to sell our participation in the Masela PSC is in line with our focus on disciplined capital allocation. We express our gratitude to all stakeholders, particularly the Government of Indonesia, for their support during the sales process. Shell continues to actively participate in Indonesia’s energy transition journey.”

Notes to Editors:

INPEX Corporation (“INPEX”) holds the remaining 65% operating interest in the Masela PSC and is the operator of the Abadi gas project. This project is situated in the Masela Block, 150 kilometers offshore Saumlaki in Maluku province, Indonesia.

SUOS acquired its interest in the Masela PSC in 2011.

In Indonesia, Shell companies oversee Downstream businesses, including mobility, lubricants, and marine operations. In November 2022, Shell Indonesia completed the expansion of its Lubricant Oil Blending Plant, doubling its production capacity to produce up to 300 million liters of lubricant products annually. Additionally, Shell’s Mobility business manages 210 fuel stations in Indonesia as of June 30, 2023. For more information, please visit https://www.shell.co.id/en_id.html.

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Shell’s net carbon intensity

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Shell’s net-Zero Emissions Target

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Forward Looking Non-GAAP measures

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SOURCE: Shell