Fossil Energy – Indonesia
Shell has agreed to sell its participating interest in Indonesia’s Masela Production Sharing Contract to Indonesia’s PT Pertamina Hulu Energi and PETRONAS Masela.
The sale concerns Shell’s participating interest of 35% in the Masela PSC, which includes the Abadi gas project.
The base consideration for the sale is $325 million in cash with an additional contingent amount of $325 million to be paid when the final investment decision (FID) is taken on the Abadi gas project.
The transaction has an effective date of January 1, 2023 and is targeted to be completed in Q3 2023, subject to completion of conditions, which include among others, regulatory approval to be obtained from the Indonesia’s Ministry of Energy and Mineral Resources.
“The decision to sell our participation in the Masela PSC is in line with our focus on disciplined capital allocation,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director.
