Photo: One of Shell's platforms off Malaysia; Source: Shell

Shell taps Dayang for topside maintenance off Malaysia

Malaysia’s services provider to the oil and gas industry Dayang Enterprise has won a contract with two Shell subsidiaries for the provision of topside maintenance services offshore Malaysia.

Dayang said on Monday in a Bursa Malaysia filing that the contract value was based on work orders issued by the two subsidiaries – Sarawak Shell Berhad and Sabah Shell Petroleum Company – throughout the contract duration.

According to the company, the duration of the contract is effective from 29 April 2021 until 19 August 2023.

The company is already under contract with the two Shell subsidiaries for maintenance services off Malaysia. Namely, the first such contract between Dayang and Shell was awarded back in August 2020 and it was agreed to last until completion of work in the year 2020.

Dayang then received a contract extension from Shell which moved the end date of the deal until 15 June 2021.

Worth noting that the company already signed a contract with Shell earlier this year. In January, the company said it received a contract extension from Shell for the provision of its accommodation workboat Dayang Opal.

In related news, Shell announced in mid-March that it was exploring options to sell its non-operated interests in the Amended 2011 Baram Delta EOR production sharing contract (PSC) and the SK 307 PSC off Malaysia.

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The two assets are located offshore Sarawak, Malaysia, and are operated by Petronas Carigali while Sarawak Shell Berhad is a non-operating partner.

The Amended 2011 Baram Delta EOR PSC was signed in 2016, to extend the life and increase the recovery factor of the Baram Delta. The Amended 2011 Baram Delta EOR PSC comprises the Bokor, Baronia, Fairley Baram, Bakau, and Siwa oil fields as well as the Tukau Timur and Baronia gas fields.

At the time, the oil major said that the decision was in line with the group’s strategy for its upstream business to become more focused and to increase its resilience and competitiveness.

It also claimed that Malaysia remained an important country for the company and that it would still have a continued strong presence in its upstream, gas-to-liquids, downstream, and business operations sectors.