Shell confirms plans to sell three assets in the UK North Sea after a newspaper reports that it briefed staff that it would dispose of the Anasuria, Nelson and Sean installations.
Royal Dutch Shell plc confirmed Thursday that it plans to sell the Anasuria, Nelson and Sean installations in the UK zone of the North Sea, after UK newspapers reported it had briefed staff that it would sell the three assets.
Anasuria is a manned floating production, storage and offloading (FPSO) installation that handles production from four subsea fields: Teal, Teal South, Guillemot A and Cook. Nelson is a platform located some 124 miles from Aberdeen that includes subsea tiebacks to the Howe and Bardolino fields, with oil exported to the Forties Pipeline System and gas exported to the Fulmar pipeline to St Fergus. Sean is a bridge-linked platform installation, located in the southern North Sea, that produces gas that is exported to Bacton, England.
The move to sell the assets comes after Shell announced a profit warning in mid-January followed by its final results for 2013 in which it said it would be making "hard choices" about new projects and reducing capital spending. The firm said it planned to budget $37 billion for capex in 2014 compared to the $46 billion in spent in 2013, along with plans to accelerate asset sales.
In a statement sent to Rigzone Thursday, Shell UK and Ireland Vice President for Upstream Glen Cayley said:
The UK is an important business region for Shell, and our investment strategy continues to focus on assets where we see an opportunity for growth using our world-class technological know-how.
"We have 50 years of investment and operations in this region, including some of the landmark developments in the history of the North Sea. We are focusing and strengthening our portfolio for the decades ahead with many exciting projects such as new wells we are drilling at Shearwater, our investment in extending the life of Gannet, our investments in the non-operated ventures of Schiehallion and Clair and our purchases, last year, of a further interest in Beryl and the Curlew floating production, storage and offloading (FPSO) vessel.
"These changes are very much in line with our strategy and will allow us to focus on where we can add value to ensure a long term future for Shell in the basin.
"We are talking to staff about the proposal to sell the assets in order to be as open as possible, whilst confirming our commitment to the North Sea."
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