MOSCOW (MRC) -- Royal Dutch Shell has agreed a USD1.9bn deal to sell its Danish upstream oil and gas assets to Norwegian Energy Company ASA (Noreco), as the company streamlines its business through a USD30bn divestment programme, reported Financial Times.
The deal, which is still subject to regulatory approval, includes producing assets of some 67,000 barrels of oil-equivalent a day, and a stake in the majority of Danish infrastructure in the North Sea, Shell said in a statement.
Noreco will take over Shell’s Danish subsidiary, known as SOGU, which holds a 36.8 per cent non-operating interest in the Danish Underground Consortium (DUC). The DUC is joint venture between Denmark’s Maersk Oil, Shell, Chevron and Nordsofonden for recovering oil and gas in the Danish North Sea.
Noreco will take on all of Shell’s commitments, including decommissioning, and will assume its role in the redevelopment of the Tyra gasfield, Denmark’s largest.
Andy Brown, Shell’s upstream director, said: "’Today’s announcement is consistent with Shell’s strategy to simplify its portfolio through a USD30 billion divestment programme, and contributes to our goal of reshaping the company."
Under the deal Shell’s trading division will retain lifting rights to the crude and gas the assets produce for a period after completion, helping it retain its position as the largest trader in the North Sea.
Shell’s other assets in Denmark, including the Fredericia refinery, will be unaffected by the sale, the company said.
As MRC wrote before, in March 2016, Royal Dutch Shell Plc began lining up assets for a USD30 billion divestment program that might be extend from the US and Trinidad to India following its record takeover of BG Group Plc.
Royal Dutch Shell, commonly known as Shell, is an Anglo–Dutch multinational oil and gas company headquartered in the Netherlands and incorporated in the United Kingdom.Created by the merger of Royal Dutch Petroleum and UK-based Shell Transport & Trading, it is the fourth largest company in the world as of 2014, in terms of revenue, and one of the six oil and gas "supermajors".
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