Asia (including Middle East and Russia)
We have a 25% interest in Brunei LNG Sendirian Berhad (BLNG). BLNG was the first LNG plant in Asia-Pacific and sells most of its LNG on long-term contracts to customers in Asia.
We jointly develop and produce from the onshore Changbei tight-gas field under a PSC with China National Petroleum Corporation (CNPC). The PSC includes the development of tight gas in different geological layers of the block. We have completed the Changbei Phase I development programme and production operatorship was successfully handed over to CNPC on January 1, 2016. In Sichuan, we have completed a significant drilling programme in all three blocks in Sichuan, in accordance with provisions of the PSCs. The Sichuan geology is challenging and the evaluation showed mixed results. We have stopped further exploration for the foreseeable future.
We also have an interest in an offshore oil and gas block in the Yinggehai basin, under a separate PSC with China National Offshore Oil Corporation (CNOOC). We are drilling an exploration well.
Shell produces gas from upstream interests in the Panna/Mukta, Mid- and South Tapti fields (each 30%).
Mahanagar Gas (MGL), a city gas distribution company, has conducted an IPO, effectively reducing our stake in MGL from 49.75% to 32.5%. The listing occurred on July 1, 2016.
Hazira is a gas import terminal in the state of Gujarat, on the west coast of India, with the capacity to regasify 5 mtpa of LNG. We have a 74% equity interest, while joint venture partner Total has 26%.
We have a 35% participating interest in the offshore Masela block where INPEX Masela is the operator. In April 2016, INPEX received a notification from the Indonesian government authorities instructing to re-propose a plan of development based on onshore LNG for the Abadi LNG project. Shell and INPEX remain committed to work together with the Government of Indonesia to ensure that the Abadi project moves forward to optimally develop the Abadi gas reserves in a manner that benefits all.
In Malaysia LNG in Bintulu, we have a 15% interest in the Tiga LNG joint venture. In May 2015, the Malaysia LNG Dua JVA expired, resulting in the transfer of our 15% shareholding to PETRONAS, in accordance with the original JVA terms.
We operate a gas-to-liquids (GTL) plant, Shell MDS (Shell interest 72%), adjacent to the Malaysia LNG facilities in Bintulu. Using Shell technology, the plant converts gas into high-quality middle distillates, drilling fluids, waxes and speciality products.
We have a 30% interest in Oman LNG, which mainly supplies Asian markets under long-term contracts. We also have an 11% indirect interest in Qalhat LNG, which is part of the Oman LNG complex.
Pearl GTL in Qatar is the world’s largest GTL plant. We operate it under a development and production-sharing contract with the government. The fully-integrated facility has capacity for production, processing and transportation of 1.6 billion standard cubic feet per day (scf/d) of gas from Qatar’s North Field. It has an installed capacity of about 140 thousand boe/d of high-quality liquid hydrocarbon products and 120 thousand boe/d of NGL and ethane. In 2015, Pearl GTL produced 4.1 million tonnes of GTL products.
Of Pearl’s two trains, the second train has undergone planned maintenance, which started in March 2016 and completed in the second quarter of 2016. The first train underwent similar planned maintenance in 2015, which was completed in April 2015.
We have a 30% interest in Qatargas 4, which comprises integrated facilities to produce about 1.4 billion scf/d of gas from Qatar’s North Field, an onshore gas-processing facility and one LNG train with a collective production capacity of 7.8 mtpa of LNG and 70 thousand boe/d of condensate and NGL.
We have a 27.5% interest in Sakhalin-2, an integrated oil and gas facility located in a subarctic environment. In 2015, the asset produced approximately 320 thousand boe/d and the output of LNG exceeded 10 million tonnes.
Our 100% interest in an exploration and production licence for the Lenzitsky block in the Yamalo Nenets Autonomous District was relinquished in 2015. We have a 100% interest in the North Vorkutinsky 1 and North Vorkutinsky 2 exploration and production licences in Komi Republic (Timan Pechora).
We also have a 50% interest through Khanty-Mansiysk Petroleum Alliance (a 50:50 joint venture with Gazprom Neft) in three exploration licence blocks in western Siberia: South Lungorsky 1, Yuilsky 4 and Yuilsky 5. We have a 50% interest in the Salym fields in western Siberia, Khanty Mansiysk Autonomous District, where production was approximately 120 thousand boe/d in 2015. In the Salym fields, production is supported by water injection.
As a result of European Union and US sanctions prohibiting certain defined oil and gas activities in Russia, in 2014 we suspended our shale oil exploration activities, which were being undertaken through Salym and Khanty-Mansiysk Petroleum Alliance.
Shell and Keppel Offshore & Marine have secured the licence to supply LNG bunker fuel to vessels in the Port of Singapore after submitting a joint bid to the Maritime and Port Authority of Singapore. With the granting of the licence, Shell and Keppel have formed a 50:50 joint venture to deliver an end-to-end bunkering solution using LNG sourced from our diversified LNG portfolio. With the BG acquisition, Shell will progress this deal on Singapore LNG bunkering. Shell has an exclusive role as the aggregator of LNG demand for the Singapore market.
Production from the Bongkot field started in 1993 and the field currently supplies around 20% of the country’s gas demand. We have a 22.2% stake in Bongkot and hold a 66.7% interest in exploration Blocks 7 & 8, where activity is currently suspended due to overlapping claims by Thailand and Cambodia. We also hold an overriding royalty agreement over Block 9a.