Malaysian state energy firm Petronas said Friday it has signed an agreement with Anglo-Dutch oil giant Shell to spend $12 billion to jointly develop oil fields off Malaysia's Borneo island. The two companies agreed Thursday to two 30-year production-sharing contracts for projects using enhanced oil recovery (EOR) technology, Petronas said in a statement.
"On a combined basis, these EOR development opportunities could be the biggest in the world in an offshore environment," the statement said. Under the agreement, Petronas and Shell will further develop nine oil fields in the Baram Delta off Sarawak state and four more fields in the North Sabah area off Sabah state.