Asia (including Middle East and Russia)
We have a 25% interest in Brunei LNG Sendirian Berhad, which 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 production-sharing contract (PSC) with China National Petroleum Corporation (CNPC). In 2016, we completed the Changbei I development programme under the PSC and subsequently handed over the production operatorship to CNPC. In December 2017, we took the final investment decision on the Changbei II Phase 1 project, and project execution began that month. Shell remains the operator of Changbei II.
In 2016, we handed back the Zitong and Fushun blocks in Sichuan to CNPC, and we expect to complete the handover of the Jinqiu block to CNPC in 2018.
We have a 30% interest in the producing oil and gas field Panna/Mukta. We also have a 30% interest in the Mid Tapti and South Tapti fields, which ceased production in the first quarter of 2016.
We have a 32.5% interest in MGL, a natural gas distribution company in Mumbai.
We have a 74% interest in the Hazira regasification terminal in the state of Gujarat on the west coast.
We have a 35% interest in the INPEX Masela Ltd joint venture, which owns and operates the offshore Masela block. In April 2016, the joint venture received a notification from the Indonesian government authorities instructing it to re-propose a plan for the Abadi gas field based on an onshore LNG project. The partners are committed to working together with the Indonesian government to move the project forward.
Shell transactions with Iran are disclosed separately. See RDS Form 20-F for the year ended December 31, 2017.
We have a 15% interest in Malaysia LNG Tiga located in Bintulu. We also operate a GTL plant, Shell MDS (Shell interest 72%), adjacent to the Malaysia LNG facilities. Using Shell technology, the plant converts gas into high-quality middle distillates, drilling fluids, waxes and specialty products.
We have a 30% interest in Oman LNG LLC, which mainly supplies Asian markets under long-term contracts. We also have an 11% interest in Qalhat LNG, which is part of the Oman LNG complex.
We operate the Pearl GTL plant (Shell interest 100%) in Qatar 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.
Due to unforeseen maintenance required on the gasifier units, Pearl GTL operated at a reduced rate of production from December 2016 until a controlled shutdown in February 2017. The plant resumed full production in July 2017 after the gasifier unit repairs were completed. In 2017, Pearl produced around 3.5 million tonnes of GTL products.
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 project located in a subarctic environment.
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 2017.
We have a 50% interest in Khanty-Mansiysk Petroleum Alliance.
We have a 100% interest in the North Vorkutinsky 1, North Vorkutinsky 2 and Syriaga exploration and production licences in Komi Republic (Timan Pechora).
As a result of European Union and US sanctions prohibiting certain defined oil and gas activities in Russia, we suspended our support to Salym and Khanty-Mansiysk Petroleum Alliance in relation to shale oil activities in 2014. Salym and Khanty-Mansiysk Petroleum Alliance also suspended any shale oil related activities in 2014.
We have a 50% interest in a joint venture with KS Investments (the investment arm of Keppel Group) that holds a licence to supply LNG fuel for vessels in the Port of Singapore. We currently have the first aggregator licence to import LNG into Singapore. The exclusivity period has ended with the issuance of the second import licence in October 2017 to both Shell Eastern Trading (Pte) Ltd (Shell interest 100%) and Pavilion Gas Pte Ltd.
We have a 22.2% interest in the Bongkot and G12/48 fields in the Gulf of Thailand and a 66.7% interest in exploration Blocks 7 and 8, where activity is currently suspended due to overlapping claims by Thailand and Cambodia. We have an agreement over Block 9a under which we receive royalties. Production from the Bongkot field supplies around 20% of the country’s gas demand.
In September, Shell and KUFPEC agreed to cancel the January sale and purchase agreement for the sale of our 22.2% interest in the Bongkot field and adjoining acreage offshore Thailand. Subsequently, in January 2018, we agreed to sell our interest to PTTEP. The transaction is pending regulatory and other approvals, and is expected to close in the second quarter of 2018.