British-Dutch multinational oil and gas company Royal Dutch Shell is mulling divesting its non-operated assets in Malaysia, media reports said. This is a part of its continuous global portfolio rationalisation. The assets are located offshore Sarawak, Malaysia. It is being operated by Petronas Carigali, a unit of state-owned oil and gas company Petronas, while Sarawak Shell is a non-operating partner.
In a statement, Shell said, “This decision is in line with the Shell group’s strategy for its upstream business to become more focused, and to increase its resilience and competitiveness. Shell Malaysia remains committed to supporting the operator in delivering safe and smooth operations until completion of a sale to a credible buyer.”
Recently, Shell also said that its total greenhouse gas emissions dropped by 16 percent in 2020 as oil and gas sales dropped sharply due to the coronavirus pandemic. Shell said that one of the major causes of this larger than expected reduction in 2020 was lower demand for energy, especially for oil and gas.
Last year, it was reported that Shell is in talks for the sale of its Norwegian natural gas supplier Gasnor. The energy major is seeking to dispose of its assets as part of its divestment plan.
For the sale, Shell approached several infrastructure funds and private equity firms. The company’s decision to sell its assets comes at a time when it is exploring ways to achieve low-carbon energy, like its industry peers. It was reported that several divestments in countries such as Argentina, Canada and the UK helped to reduce greenhouse gas emissions last year.