Oil major Shell said it has come to an agreement with PetroMatad over payment obligations following its withdrawal from the projects.
The company said under the terms of the agreement, Shell’s affiliate BG Mongolian Holdings Limited, will pay an exit amount of more than $10million with a further $5million on completion of the reassignment.
Enkhmaa Davaanyam, Petro Matad chairperson, said: “I am very pleased that Shell and Petro Matad were able to conclude this agreement. The cash to be provided by Shell will enable the Company to continue its planned work program culminating in exploration drilling next year.”
The announcement comes as Chevron revealed plans to sell off $5billion of its Asian assets.