Shell and UAE's Mubadala swap Malaysian offshore field stakes

Reuters

DUBAI, Jan 19 (Reuters) - Royal Dutch Shell andMubadala Petroleum have swapped equity stakes in two explorationblocks off Malaysia, the companies said on Sunday.

Mubadala has taken a 20 percent interest in theShell-operated deepwater Block 2B and Shell has taken a 20percent interest in the Mubadala-operated Block SK320 in return.

"The equity swap agreement is an important step for MubadalaPetroleum's growth strategy in Malaysia and marks our firstpartnership in Southeast Asia with Shell, an important player indeepwater exploration," Maurizio La Noce, chief executive ofMubadala Petroleum, said in a statement.

Mubadala, owned by the Abu Dhabi government, said thatdrilling in Block SK320 had yielded two new gas discoveries,called Pegaga and Sintok.

"We need to do further work to determine the full extent andcommerciality of those discoveries," La Noce said.

Anglo-Dutch energy giant Shell is the operator for 13production sharing contracts (PSCs) in Malaysia and has stakesin five others. Output from these PSCs accounted for nearly halfof Malaysia's total gas production in 2013, Shell said in astatement.

Mubadala was awarded its acreage in 2010 and the adjacentBlock 2B was awarded to Shell in 2012.

State-run Malaysian oil and gas company Petronas is aparticipant in both blocks, which lie off the coast of theisland of Borneo.

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