LONDON (Alliance News) - Royal Dutch Shell PLC is considering pulling out of New Zealand as it continues its drive to sell USD30.00 billion worth of assets to simplify the business to cope with lower oil prices, the Financial Times reported Thursday.
Citing Rob Jager, Shell's chairman of New Zealand, the FT said the company has conducted an entire review of the New Zealand business, which could lead to Shell exiting the country after operating in New Zealand for a century.
"The options will range anywhere from business as usual and, as we are operating today, to potentially a full country exit and any alternative in between," Jager told FT in a conference call.
Shell is trying to sell USD30.00 billion worth of assets over the next three years in an attempt to simplify its business so it is more competitive in a world of lower oil prices, which have plunged compared to prices in the first half of 2014.
Analysts have estimated the company's assets in New Zealand could generate around USD1.00 billion in proceeds if sold, but have also noted that finding a buyer in the current environment will be difficult.
http://www.ft.com/cms/s/0/fa166d4a-9ee3-11e5-bfed-a24713ecdd4f.html#axzz3ttkf68uQ
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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