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Shell sells North Sea assets worth £2.46bn to Chrysaor | Shell sells North Sea assets worth £2.46bn to Chrysaor |
(about 1 hour later) | |
Royal Dutch Shell has agreed to sell $3.8bn (£2.46bn) worth of North Sea assets to oil exploration firm Chrysaor as part of continuing debt reduction measures. | |
Shell is aiming to sell $30bn of assets by 2018 as it seeks to pay off debt following its takeover of BG Group. | |
The deal represents about half of Shell's 2016 North Sea output. | |
Chrysaor will become the largest independent operator in the North Sea after the deal's completion. | |
On completion of the North Sea deal, about 400 staff will transfer to Chrysaor, "subject to a detailed scoping exercise and staff consultation", Shell said. | On completion of the North Sea deal, about 400 staff will transfer to Chrysaor, "subject to a detailed scoping exercise and staff consultation", Shell said. |
"This transaction shows the clear momentum behind Shell's... divestment programme," the company said. | |
Shell's interests in Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine - plus a 10% stake in Schiehallion - will be sold as part of the deal. | Shell's interests in Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine - plus a 10% stake in Schiehallion - will be sold as part of the deal. |
The firm said it expected to "record an accounting gain" on the sale, which includes Shell and former BG assets. | The firm said it expected to "record an accounting gain" on the sale, which includes Shell and former BG assets. |
Shell's chief financial officer Simon Henry said the deal "builds on recent upstream divestments in the Gulf of Mexico and Canada." | Shell's chief financial officer Simon Henry said the deal "builds on recent upstream divestments in the Gulf of Mexico and Canada." |
He added that the firm wanted to "simplify our portfolio following the acquisition of BG". | He added that the firm wanted to "simplify our portfolio following the acquisition of BG". |
In April 2015, Shell agreed to buy the oil and gas exploration firm in a deal that valued the business at £47bn. | In April 2015, Shell agreed to buy the oil and gas exploration firm in a deal that valued the business at £47bn. |
Shell cut thousands of jobs after the BG deal, and announced more than 10,000 job cuts globally. | Shell cut thousands of jobs after the BG deal, and announced more than 10,000 job cuts globally. |
Also on Tuesday, Shell said it would sell its stake in Thailand's Bongkot gas field to the Kuwait Foreign Petroleum Exploration Company for $900m. |