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Shell to buy Total’s deepwater Brunei unit
Royal Dutch Shell PLC has agreed to the purchase by one of its subsidiaries of Total E&P Deep Offshore Borneo BV, which holds an 86.95% interest in exploratory Block CA1 offshore Brunei for $300 million.

OGJ editors Oct 30th, 2019



Royal Dutch Shell PLC has agreed to the purchase by one of its subsidiaries of Total E&P Deep Offshore Borneo BV, which holds an 86.95% interest in exploratory Block CA1 offshore Brunei for $300 million.

The block, more than 100 km offshore, covers 5,850 sq km in 1,000-2,500 m of water. Total is operator. Other interests are Murphy Oil, 8.05%, and Petronas, 5%.

Total, of which the company to be acquired is a wholly owned subsidiary, said the deal is part of a program to sell $5 billion of noncore assets during 2019-20.

Another subsidiary, Total E&P Borneo BV, operates Block B, 50 km offshore, as a 37.5% partner in a joint venture with Shell Deepwater Borneo Ltd., 35%, and PB Expro, 27.5%.

Mahararajalela Jamalulalam field on Block B has produced natural gas and condensate since 1999.

Brunei’s oil and gas fields produce approximately 127,000 barrels of oil per day (bbl/day) and 243,000 barrels of oil equivalent of natural gas per day.