Shell is set to begin geophysical surveys next week to explore potential drilling opportunities offshore Malaysia, Upstream reported on Thursday.
The work at the site of the survey is expected to continue through September.
Shell will be looking for drilling opportunities in the acreage offshore Sarawak which include the supermajor's MLNG, SK 439, and SK 440 production sharing contracts, according to Upstream. Petroleum Sarawak Exploration and Production (PSEP) of Malaysia is Shell's partner in the SK 439 and SK 440 blocks.
In March 2022, Shell signed three production-sharing contracts with Malaysia's state energy firm Petronas, to explore oil and gas offshore Sabah and Sarawak, with Sabah Shell Petroleum Company Limited (SSPC) and Sarawak Shell Bhd (SSB) operating the exploration initiatives. The production sharing contracts include exploration of blocks SK439/SK440 in shallow water, off the coast of Sarawak and exploration of blocks SB-2W and SB-X in deep water, off the coast of Sabah.
"Our long and successful partnership with PETRONAS in Malaysia continues, as together we seek to provide the energy of today while funding the energy of tomorrow. I look forward to further successful collaboration on growing a sustainable energy industry in Malaysia," Shell said at the time.
A year after signing these deals, Shell laid out plans in June 2023 to grow its gas business and extend its position in the upstream.
"It is critical that the world avoids dismantling the current energy system faster than we are able to build the clean energy system of the future. Oil and gas WILL continue to play a crucial role in the energy system for a long time to come with demand reducing only gradually over time," Shell's chief executive Wael Sawan said on Shell's Capital Markets Day in the middle of June.
"Continued investment in oil and gas is critical to ensure a balanced energy transition," Sawan added in the pivot to ensure today's energy needs, similar to what BP announced earlier this year.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More
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