Shell to Sell US GoM Asset Stake for Almost US$1 billion

Shell Offshore Inc has signed an agreement to sell its 22.45 percent non-operated interest in the Caesar-Tonga asset in the US Gulf of Mexico to Delek CT Investment LLC.

The total consideration for the deal, which is likely to close by the end of the third quarter, is US$965 million in cash. The agreement is subject to certain conditions, including regulatory approvals.

“This transaction represents our continued focus on strategically positioning our deep-water business for growth and is consistent with our upstream strategy of pursuing competitive projects that deliver value in the 2020s and beyond,” Andy Brown, upstream director at Royal Dutch Shell, said.

“The sale will contribute to Shell’s ongoing divestment programme and allow us to direct resources to the areas where we see the most value in the longer term,” he added.

Caesar-Tonga is located approximately 190 miles south-southwest from New Orleans, Louisiana, in the Green Canyon area of the US Gulf of Mexico.

The development area covers blocks GC683, GC726, GC727 and GC770 at water depths of about 4,900 feet.

The field is operated by Anadarko Petroleum Corporation, holder of a 33.75 percent interest.

The remaining interest is distributed between Equinor (23.55 percent), Shell (22.45 percent) and Chevron (20.25 percent).

In December last year, Royal Dutch Shell Plc completed the sale of its shares in Shell entities in New Zealand to OMV for US$578 million.

In November 2018, Shell completed the sale of its shares in Shell E&P Ireland Limited for up to US$1.3 billion.

Source: Rigzone