Royal Dutch Shell (LON:RDSA) has agreed to sell its interests in the Draugen Norwegian offshore field and the Gjøa block for a total of $556 million, the Anglo-Dutch group has said. The move comes as the company continues with its $30-billion disposal programme in the wake of the acquisition of BG Group.
Shell’s share price has been little changed in today’s session, having added 0.02 percent to 2,562.00p as of 14:41 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.80 percent higher at 7,664.54 points. The group’s shares have added more than a quarter to their value over the past year, as compared with about a 2.8-percent gain in the Footsie.
Shell offloads Norway assets
Shell announced in a statement today that it had reached an agreement with OKEA to sell its entire 44.56-percent interest in Draugen and 12.00-percent interest in Gjøa in Norway for $556 million. The transaction, which is subject to regulatory approval, is expected to complete in the last quarter of the year. The Anglo-Dutch oil major noted that the decommissioning costs associated with the assets were currently estimated to be $120 million after-tax, with Shell to retain 80 percent of this liability up to an agreed cap.
“This deal is part of Shell’s global, value-driven $30bn divestment programme and is consistent with our strategy to high-grade and simplify our portfolio”, Andy Brown, Shell’s Upstream Director, commented in the statement.
Group wraps up disposal in Malaysia
In a separate development, Shell completed the sale of its 15-percent shareholding in Malaysia LNG Tigato the Sarawak State Financial Secretary for an agreed consideration of $750 million. The net final consideration paid to the Anglo-Dutch group was approximately $640 million.
“Completion of this sale demonstrates the clear momentum behind Shell’s delivery of its global divestment programme,” Shell said in the statement.