Shell sells interest in Indonesian gas project to PETRONAS, PT Pertamina Hulu Energi for $650 million

(WO) – Shell Upstream Overseas Services (I) Limited (“SUOS”), a subsidiary of Shell plc, has agreed to sell its participating interest in Indonesia’s Masela Production Sharing Contract (“Masela PSC”) to Indonesia’s PT Pertamina Hulu Energi (“PHE”) and PETRONAS Masela Sdn. Bhd (“PETRONAS Masela”). The sale concerns SUOS’ participating interest of 35% in the Masela PSC, which includes the Abadi gas project.

The base consideration for the sale is $325 million in cash with an additional contingent amount of $325 million to be paid when the final investment decision (FID) is taken on the Abadi gas project. The transaction has an effective date of January 1, 2023 and is targeted to be completed in Q3 2023.

"The decision to sell our participation in the Masela PSC is in line with our focus on disciplined capital allocation,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director.

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