Shell Plans To Sell Stake In Indonesia's Masela Block For Around $650M

Shell PLC SHEL disclosed plans to sell its 35% interest in Indonesia's Masela Block, including the Abadi gas project, to PT Pertamina Hulu Energi (PHE) and PETRONAS Masela Sdn. Bhd.

The sale totaled $325 million in cash, including an additional contingent amount of $325 million expected to be paid following the final investment decision for the Abadi gas project.

“The decision to sell our participation in the Masela PSC is in line with our focus on disciplined capital allocation. We wish to thank all stakeholders, especially the Government of Indonesia for their support throughout the sales process. Shell remains active in Indonesia and continues to contribute to the country’s energy transition journey,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director. 

The deal, effective January 1, 2023, is expected to be completed in Q3 2023, subject to satisfactory regulatory approvals.

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Price Action: SHEL shares are trading lower by 0.74% at $62.91 premarket on the last check Tuesday.