Shell to sell $3 billion North Sea assets

Shell to sell $3 billion North Sea assets

Royal Dutch Shell (LSE:RDSB) is on the verge of unloading US$3 billion of its North Sea oil and gas assets, as part of its continued streamlining policy over the last two years.

North Sea-focused private oil company Chrysaor will purchase a number of offshore oil and gas fields, along with existing infrastructure and new developments from the Anglo-Dutch giant.

UK-based Chrysaor, backed by private equity fund EIG Partners, will also take charge of hundreds of Shell employees that currently work on the platforms.

The deal represents another phase in Shell’s $30 billion disposal target by around 2018, after the $54 billion acquisition of BG Group in February 2016, and the changing outlook of oil majors relating to ownership and operation of assets in the North Sea.

BP (LSE:BP) also recently announced an $85 million sale of its stakes in the Sullom Voe Terminal (SVT) and the Magnus oil field in the North Sea, highlighting the increasing propensity of major oil companies to sell their assets in the area.

The deal is expected to be announced over the next few days, along with Shell’s full-year results.

Shell has sold or agreed to sell around $7.8 billion of assets since April 2015, although the majority of this has been in the refining sector and infrastructure.

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