Shell divests Gulf of Mexico assets for $425m

Shell divests Gulf of Mexico assets for $425m

Royal Dutch Shell Plc (LSE:RDSB), through its affiliate Shell Offshore Inc., has agreed to sell 100% of its record title interests in the Gulf of Mexico to EnVen Energy Corporation for US$425 million.

EnVen will gain control of four blocks of Shell’s Brutus/Glider operation in the US part of the Gulf, in addition to the platform and subsea pipeline network that channels crude from the field’s to the shore.

The field pumps around 25,000 barrels of oil a day or 5.8% of Shell’s output in the Gulf of Mexico.

The company has been cancelling projects and reducing cash outlays to deal with the plunge in oil markets and the company’s $54 billion purchase of BG Group.

Shell currently produces around 600,000 boe/d and plans to increase production to more than 900,000 boe/d by 2020 from established reservoirs.