Under the agreement, Petronas subsidiary Petronas Carigali (Australia) is moving to secure a 25% interest from Shell in Australia’s NT-P48 Permit, which includes the Evans Shoal Joint Venture in Northern Territory waters. The agreement is subject to regulatory approvals.
The new equity structure for the joint venture will be Santos operator and 40%, Shell 25%, Petronas 25%, and Osaka Gas 10%.
“The participation of Petronas, a world-scale LNG player, is expected to strengthen the Evans Shoal joint venture’s ability to take this asset forward,” Shell Development Australia chief operating officer Chris Gunner said.
Petronas is not new to Australia, having interests in Australia's domestic gas pipeline network through the Australian Pipeline Trust and East Australian Pipeline Marketing.
Shell is a long-time player in Malaysia’s oil and gas industry and operates 17 production sharing contracts, eight of which are gas acreages.
Shell is also a 15% partner in Malaysia’s MLNG Dua and MLNG Tiga plants.