Asia (including Middle East)
Shell and the Brunei government are 50:50 shareholders in Brunei Shell Petroleum Company Sendirian Berhad (BSP). BSP has long-term oil and gas concession rights onshore and offshore Brunei, and sells most of its gas production to Brunei LNG Sendirian Berhad (See “Integrated Gas”), with the remainder (approximately 13%) sold in the domestic market.
In April 2017, BSP and the government of Brunei announced exploration success in the Lumut area, with the Layang-Layang well discovery.
In addition to our interest in BSP, we are the operator of the Block A concession (Shell interest 53.9%), which is under exploration and development, and the operator of exploration Block Q (Shell interest 50%). We have a 35% non-operating interest in the Block B concession, where gas and condensate are produced from the Maharaja Lela field.
We also have non-operating interests in deep-water exploration Block CA-2 (Shell interest 12.5%) and in exploration Block N (Shell interest 50%), both under PSCs.
Shell transactions with Iran are disclosed separately. See RDS Form 20-F for the year ended December 31, 2017.
In 2017, we had a 20% interest in the development and production services contract for the West Qurna 1 field, which is operated by ExxonMobil. In March 2018, Shell agreed and completed the sale of its stake in the West Qurna 1 oil field to a subsidiary of Itochu Corporation.
We also have a 44% interest in the Basrah Gas Company, which gathers, treats and processes associated gas produced from the Rumaila, West Qurna 1 and Zubair fields that was previously being flared. The processed gas and associated products, such as condensate and LPG, are sold mainly to the domestic market and surplus condensate and LPG are exported. In 2017, Basrah Gas processed on average around 700 million scf/d of associated gas into dry gas, condensate and LPG.
We have a 45% interest in the Majnoon oil field that we operate under a development and production services contract. In September 2017, the Iraqi government and Shell announced that we will exit the Majnoon development and production services contract and hand over the operations to the Iraqi government or its nominee.
We are the joint operator of the onshore Karachaganak oil and condensate field (Shell interest 29.25%), where we have a licence to the end of 2037. Karachaganak produced around 393 thousand boe/d, on a 100% basis, in 2017.
We have a 16.8% interest in the North Caspian Sea Production Sharing Agreement which covers, among others, the Kashagan field in the Kazakh sector of the Caspian Sea. The North Caspian Operating Company is the operator. This shallow-water field covers an area of approximately 3,400 square kilometres. Phase 1 development of the field is expected to lead to plateau oil production capacity of about 370 thousand barrels per day (b/d) by 2019, on a 100% basis, with the possibility of increases with additional phases of development. Production started in 2016.
We also have an interest of 55% in the Pearls PSC in the Kazakh sector of the Caspian Sea. It includes two oil discoveries, Auezov and Khazar. The Pearls PSC acreage decreased from around 900 square kilometres to around 520 in 2017, due to relinquishment of the Naryn and Tulpar licences, which were no longer deemed economically viable.
We also have a 7.43% interest in Caspian Pipeline Consortium, which owns and operates an oil pipeline running from the Caspian Sea to the Black Sea across parts of Kazakhstan and Russia.
We explore for and produce oil and gas offshore Sabah and Sarawak under 17 PSCs, in which our interests range from 20% to 75%. This includes the SK319 PSC which expired at the end of 2017 and for which we have applied for an extension of the exploration period.
In 2017, we acquired a 25.1% non-operating interest in Block N.
In 2016, we agreed to sell our 50% interest in the 2011 North Sabah EOR Production Sharing Contract. This transaction is expected to complete in the first quarter of 2018.
Offshore Sarawak, we are the operator of 12 producing gas fields (Shell interests ranging from 37.5% to 50%). The M3S field (Shell interest 70%) has reached the end of its life and will be abandoned. Nearly all of the gas produced offshore Sarawak is supplied to Malaysia LNG in Bintulu and to our gas-to-liquids plant in Bintulu. See “Integrated Gas”.
We also have a 40% interest in the 2011 Baram Delta EOR PSC and a 50% interest in Block SK-307. Additionally, we have interests in four exploration and development PSCs: SK318, SK319, SK320 and SK408.
We have a 34% interest in Petroleum Development Oman (PDO); the Omani government has a 60% interest. PDO is the operator of more than 160 oil fields, mainly located in central and southern Oman, over an area of 85,823 square kilometres. The concession expires in 2044.
United Arab Emirates
In Abu Dhabi, we have a 15% interest in the licence of ADNOC Gas Processing (previously named Abu Dhabi Gas Industries Limited, or GASCO), which expires in 2028. ADNOC Gas Processing exports propane, butane and heavier-liquid hydrocarbons, which it extracts from the wet gas associated with the oil produced by ADNOC Onshore (previously named Abu Dhabi Company for Onshore Oil Operations, or ADCO).
Rest of Asia
We also have interests in Jordan, Kuwait, Mongolia, Myanmar, State of Palestine, the Philippines and Turkey.