Hot Features
Premium
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
Royal Dutch Shell (LSE:RDSA) (LSE:RDSB) successfully drilled a new gas discovery off the coast of Malaysia, the petroleum giant announced today.
In a statement, Shell reported it encountered 450 metres of gas column after drilling Rosmari-1 to a depth of 2,123 metres, 135 kilometres off the coast of Sarawak state, in the island of Borneo. The well is located within Block SK318, which is operated by Shell for an eighty-five percent interest, the remaining fifteen percent owned by Malaysia’s state-owned Petronas.
Shell and Petronas signed two exploration and production sharing agreements through their local subsidiaries back in 2012 for US$145 million worth of investment within four years. The company had been present in Malaysia for over 100 years, with an average annual investment of US$ 1 billion.
“This adds to Shell’s sequence of recent exploration successes in Malaysia, with these discoveries expanding the company’s heartlands positions,” said Iain Lo, Chairman of Shell Malaysia.
Andy Brown, Director of Shell Upstream International said the well “is a testament to our ability to successfully drill and build understanding of new geology within our existing exploration heartlands, adding value to our existing assets in Malaysia”.
“We are expanding and rejuvenating heartlands across our exploration portfolio, including in Brunei, Australia and the Gulf of Mexico,” he added.
Shell’s A and B shares eased up 0.2 percent and 0.1 percent to 2,230.50 pence and 2,386.50 pence, respectively, minutes after London’s main market opened earlier today.
