Malaysian oil and gas national, Petronas, has taken control of Royal Dutch Shell’s 50% stake in MLNG Dua, the Sarawak LNG plant.
Shell had controlled a 50% interest of the business as part of a production sharing contract (PSC), signed with Petronas back in 1993, however that agreement came to an end at 0001 Friday.
The LNG plant, located in n Bintulu, in the Malaysian state of Sarawak, is one of he largest in the world, consisting of 8 LNG trains. The MLNG Dua section of the plant consists of 3 trains, with the production capacity of 9.2 million tonnes of LNG per year.
All produce is exported to foreign markets, with Japan buying 65%, Korea 26% and Taiwan 9%.
As part of the hand over, a closed door ceremony was reported to have taken place in the PETRONAS Carigali Sdn Bhd (PSCB) operations offices in Miri, Malaysia. Shell’s Head of Sarawak Assets, Chok Chee Tsong, reportedly handed over documents to Petronas in a symbolic gesture.
In a speech, Petronas’ Senior Vice President Upstream Malaysia, Mohd Anuar Taib said, “Petronas would like to thank Shell for all the work they have done at MLNG Dua and Petronas will continue to emulate and improve the previous operating philosophy for the MLNG Dua offshore facilities during this time that Petronas is entrusted to do so.”
Petronas has stated that all contractors and vendors currently working on the LNG plant will keep the security in their jobs.
Petronas said that of the 39 Shell production employers it is legally allowed to approach, 37 accepted a move to Petronas, whilst the remaining 2 decided to stay with Shell.
Under the new ownership, Petronas now owns 90% equity in the LNG plant, whilst the remaining 10% is owned by E&P Malaysian Ventures Sdn Bhd.