Shell details North Sea, Thailand sale

Shell on Tuesday announced further details of its North Sea assets sale to London-based independent Chrysaor.

In a deal worth as much a USD 3.8 billion, Shell will sell its shares in the Beryl, Bressay, Buzzard, Elgin-Franklin, Erskine, Everest, Greater Armada cluster, J-Block and Lomond assets. The Anglo-Dutch major will also shed its 10% stake in Schiehallion.

Reports on the sale first appeared on Friday, with many analysts pointing to the deal as a “litmus test” for markets’ appetite for upstream assets. The transaction is subject to approval, which is expected in the second half of the year.

Shell earlier on Tuesday said it had agreed to sell its 22.2% equity shareholding in acreage offshore Thailand to Kuwait Foreign Petroleum Exploration Company (Kufpec). Valued at USD 900 million, the Kuwaiti player will take over Shell’s stake in the Bongot field, as well as Blocks 15, 16, 19 and G12/48.

According to Kufpec, the deal will give it access to 68 million boe in 2P reserves and around 39,000 boepd in output. The transaction is expected to be finalised in February.