Brexit puts damper on Shell divestments

LONDON, July 8, 2016 – Shell CEO Ben van Beurden, commenting on the UK vote to leave the EU, on Friday said that the outcome could affect the company’s asset sale in the North Sea fields particular.

Speaking at a closed-door event on the sidelines of the Wimbledon tennis tournament, the Shell chief executive reportedly said that company’s North Sea asset sale, which includes the BG Group’s non-operating stake in the Buzzard oilfield, could take more than three years. “[Brexit] will make it more difficult to execute disposals,” van Beurden was quoted as saying by those in attendance.

In an official statement, Shell said that the company had not altered its course. “There has been no change to the previous statement we made on the three-year, $30 billion divestment programme.”

Banking sources queried by Reuters on Friday said that the Shell assets on the table also include its 55% share in the Schiehallion oilfield, operated by BP, the company’s share in the Statoil-operated Bressay development, as well as the Armada, Everest, J Block and Nelson fields. According to reports, Shell has hired Bank of America Merrill Lynch to help with the sale. The financial services provider declined to comment.