The consideration is an undisclosed cash sum plus the 25 percent Petro-Canada equity share in Block 14/28b, which includes a one percent interest in the Shell-operated Goldeneye development in the Moray Firth. Through the transaction, Shell's interest in Goldeneye will be increased to 49 percent.
Roger Patey, Business Improvement Director of Shell U.K. Exploration and Production, said: "This transaction is in line with Shell's stated strategy of divesting non-core assets in the North Sea. We continually review our asset portfolio in the North Sea, with the priority being to concentrate resources on fields and license blocks in core areas, which can attract immediate investment from the Royal Dutch/Shell Group of Companies. Where assets are considered to be non-core, or short-term investment funding is unavailable, Shell will seek ways to commercialize these assets with companies which are active in, or wish to participate in, the UK Continental Shelf."
The divestment of fallow acreage is also in accordance with the PILOT Government-Industry initiative to promote the development of fallow acreage in the interests of promoting overall economic activity in the UKCS. The deal includes Shell’s entire interest in the exploration acreage Block 21/23b (containing the fallow Grebe discovery), block 21/30 South (containing two small fallow discoveries), Block 21/29b North, Block 21/29b South East, Block 21/29b South West.
Shell's share of production from the divested assets is 2,400 barrels of oil equivalent a day, which is around 0.4 per cent of Shell's total UK production.
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