Shell jettisons Danish oil fields in $1.9bn sale
By Duncan Ferris
Date: Wednesday 17 Oct 2018
(Sharecast News) - Royal Dutch Shell has reached an agreement to dispose of its Danish oil fields through the sale of wholly-owned subsidiary Shell Olie-og Gasudvinding Danmark (SOGU) for $1.9bn.
The purchaser of SOGU, Norwegian Energy Company ASA (Noreco), will assume all previously existing commitments and obligations, including the Tyra gas pipeline redevelopment and the decommissioning costs associated with the assets.
It has also effectively acquired SOGU's 37% non-operating interest in the Danish underground consortium, which operates a number of energy fields.
Andy Brown, Shell's upstream director, said: "Today's announcement is consistent with Shell's strategy to simplify its portfolio through a $30bn divestment programme, and contributes to our goal of reshaping the company into a world class investment case."
Shell Trading and Supply and Shell Energy Europe Limited will continue to have oil and gas lifting rights from the SOGU assets for an unspecified period after the sale's completion, which is slated for 2019.
Lee Hodder, Shell's country chair, said: "We are very proud and grateful to have been part of the Danish underground consortium since its inception five decades ago. The DUC continues to provide material tax revenues, jobs and energy security to Denmark, and the Tyra redevelopment will ensure that this will be the case for decades to come."
The British-Dutch oil and gas company said the deal will not have an effect on its other Danish businesses such as A/S Dansk Shell, which includes the Fredericia refinery, and DCC, which operates Shell branded retail stations.
Shell's A shares were down 1.16% at 2,476.00p, while its B shares dropped 1.04% to 2,519.00p at 1551 BST.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN