LONDON (Alliance News) - Royal Dutch Shell PLC on Wednesday said it has agreed a USD1.9 billion sale of some upstream interests to Norwegian Energy Co ASA.
The energy giant will sell its entire holding in Shell Olie-og Gasudvinding Danmark BV, or SOGU, its wholly-owned Danish subsidiary. SOGU has a 37% non-operating interest in the Danish Underground Consortium, which operates a number of energy fields.
Norwegian Energy is to assume all of the FTSE 100-listed company's commitments and obligations, including the redevelopment of the Tyra West – F3 gas pipeline.
The deal is set to complete in 2019, although Shell will continue to have oil & gas lifting rights after completion through Shell Trading & Supply and Shell Energy Europe Ltd.
Based on 2017 figures, the sale represents 67,000 barrels of oil equivalent per day.
Regulatory approval is still needed for the deal. Shell will retain its other Danish businesses, such as its ownership of the Fredericia refinery via A/S Dansk Shell .
"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 into a world class investment case," said Shell Upstream Director Andy Brown.
Shell 'A' shares were 0.1% lower Wednesday at 2,503.00 pence, with Shell 'B' shares flat at 2,546.34p.
