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Pertamina, Petronas secure Shell’s Masela stake for $650m
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PHE president director Wiko Migantoro (left) signs a sales and purchase agreement for a Masela Block stake at the Indonesian Petroleum Association (IPA) Convention & Exhibition in Tangerang, Banten, on July 25, 2023. At the same time, Pertamina CEO Nicke Widyawati (right) signs a strategic partnership MoU for the block’s development with Inpex president and CEO Takayuki Ueda (second right). (Pertamina/-)
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tate-owned oil and gas giant Pertamina and Malaysia’s Petronas have officially acquired Shell’s 35 percent participating interest in the Masela oil and gas block in Maluku, which also includes the Abadi gas project, for US$650 million.
The parties signed a sales and purchase agreement on the transaction on Tuesday.
According to a press release published by Shell on the same day, the base consideration for the block’s sale is $325 million in cash along with an additional contingent amount of $325 million to be paid upon the final investment decision (FID) on the Abadi gas project.
The transaction took effect on Jan. 1 this year, as per Shell’s statement, and is expected to be completed by October 2023. The conclusion of the deal is subject to certain conditions, including regulatory approval from the Energy and Mineral Resources Ministry.
Read also: Pertamina to pay for half of Shell’s Masela stake this month
Pertamina is collaborating in the deal with its Malaysian counterpart Petronas according to a press release published on Tuesday by Pertamina.
Pertamina Hulu Energi (PHE), Pertamina’s upstream unit is to manage 20 percent of the block, while Petronas Masela will hold 15 percent, the release adds.
