Royal Dutch Shell and Abu Dhabi-owned Mubadala Petroleum swapped equity stakes in two exploration blocks off Malaysia, the companies said Sunday.
Mubadala took a 20 percent interest in Shell’s deepwater Block 2B.
Shell took a 20 percent interest in Mubadala’s Block SK320.
“The equity swap agreement is an important step for Mubadala Petroleum’s growth strategy in Malaysia and marks our first partnership in Southeast Asia with Shell, an important player in deepwater exploration,” Maurizio La Noce, chief executive of Mubadala Petroleum, said in a statement.
Mubadala said exploration wells in Block SK320 showed two new gas discoveries called Pegaga and Sintok.
Shell is the operator for 13 production sharing contracts (PSCs) in Malaysia and has stakes in five others, Reuters aid.
Output from these PSCs accounted for nearly half of Malaysia’s total gas production in 2013, Shell said in a statement.
Petronas, Malyasia’s state-run oil and gas company, has an interest in both blocks, Reuters said, which are located off the coast of Borneo.