|Shell, Petronas strengthen gas asset position|
MELBOURNE, Australia -- Shell Development (Australia) Pty Ltd (SDA) says it has signed a strategic agreement with Malaysia's national oil corporation Petronas to strengthen their gas asset positions in Malaysia and Australia.
The agreement, subject to regulatory approvals, would reduce SDA's stake to 25% in the permit offshore Northern Territory.
Santos Ltd. will remain the operator of the joint venture exploiting the permit with its majority 40 percent stake. Japan's Osaka Gas has 10% interest in the permit.
Petronas participation is expected to help proceed with the Evans Shoal LNG project.
Shell is a long-time player in Malaysia's oil and gas industry and currently operates 17 production-sharing contracts, eight of which are gas. Shell is also a 15% partner in Malaysia's LNG exporting plants in Bintulu on Borneo.
Copyright © 2007: PennWell Corporation, Tulsa, OK; All Rights Reserved.