LONDON (Alliance News) - Oil giant Royal Dutch Shell PLC is to sell its 22% stake in a Gulf of Mexico asset for USD965 million in cash, it said Thursday.
The holding, in the Caesar-Tonga asset in the US part of the Gulf, is being sold to Delek CT Investment LLC, part of Delek Group Ltd.
Delek is an Israeli firm involved in the energy and infrastructure markets.
"This transaction represents our continued focus on strategically positioning our deep-water business for growth and is consistent with our Upstream strategy of pursuing competitive projects that deliver value in the 2020s and beyond," said Upstream Director Andy Brown.
"The sale will contribute to Shell's ongoing divestment programme and allow us to direct resources to the areas where we see the most value in the longer term."
Shell, London's largest listed company by some distance, has been carrying out a significant asset sale programme in the last few years.
In 2018, it sold some USD7.10 billion of assets, compared to USD17.34 billion in 2017, both part of a USD30 billion divestment programme to streamline operations.
In a separate statement Thursday, Shell confirmed shareholder group Follow This is to withdraw its resolution put forward for the company's annual general meeting, to be held in the Hague on May 21.
On Sunday, the Financial Times reported environmental activist shareholder group Follow This is to switch its focus to other companies after deciding Shell has become "an industry leader" in adopting emissions targets.
On Monday, Shell announced a USD300 million investment into projects such as planting forests to help reduce its carbon footprint.
Shell welcomed the withdrawal on Follow This' resolution, stating it was not in the best interests of the firm nor shareholders.
