Shell eases debts through $1.23 billion Irish gas field sale

Shell eases debts through $1.23 billion Irish gas field sale

Royal Dutch Shell (LSE:RDSB) has parted with its 45% stake in an Irish gas project, raising a further US$1.23 billion in support of its debt reduction strategy through the sale.

The Anglo-Dutch oil major will sell its share in the Corrib gas field to the investment arm of Canada Pension Plan, one of the world’s largest pension funds.

“This transaction is part of our strategy to reshape Shell and to deliver a world class investment case,” said Shell’s upstream director, Andy Brown.

“It demonstrates the strong momentum behind our three-year $30 billion divestment programme. At the half-way point, we have now announced deals valued at more than $20 billion.”

Corrib, located 50 miles off the coast of Northwest Ireland, came onstream in 2015 and currently produces 60,000 barrels of oil equivalent per day, which represents 60% of Irish gas demand alone.

Operational control of the field will be passed to Vermilion, a Canada based firm which holds a 18.5% stake, which will be increased to 20% as part of the deal. Norway’s Statoil will maintain its 36.5% stake.