(Adds name of Shell's head of upstream in paragraph 5)
LONDON, May 20 (Reuters) - Royal Dutch Shell has
agreed to sell its stake in a offshore gas field in the
Philippines for $460 million as part of its strategy to narrow
its oil and gas operations.
Shell sold its 45% stake in Service Contract 38 (SC38), a
deep water licence which includes the producing Malampaya gas
field, to a subsidiary of the Udenna Group which already holds a
45% stake in the project.
The base consideration for the sale is $380 million, with
additional payments of up to $80 million between 2022 to 2024
contingent on asset performance and commodity prices, Shell said
in a statement.
The deal is targeted to complete by the end of 2021.
Wael Sawan, Shell's head of oil and gas production, said the
deal "is consistent with Shell's efforts to shift our Upstream
portfolio to one that is focused on nine core positions."
(Reporting by Ron Bousso; Editing by Simon Cameron-Moore)