Shell reported on November 1, 2017, that the company has completed the sale of a package of UK North Sea assets to the UK-based independent oil & gas company Chrysaor.
The assets were sold for a fee of up to $3.8 bln, including an initial consideration of $3 bln and a payment of up to $600 mln between 2018- 2021 subject to commodity price, with potential further payments of up to $180 mln for future discoveries.
This sale was announced on January 31, 2017, as part of Shell’s previously announced $30 billion divestment program.
The package of assets consists of Shell’s interests in Buzzard, Beryl, Bressay, Elgin-Franklin, J-Area, the Greater Armada cluster, Everest, Lomond and Erskine, plus a 10% stake in Schiehallion.
Shell retains a significant, more focused and strengthened presence in the UK North Sea, to which it remains committed, the oil giant said today.
«Completion of this deal shows the clear momentum behind Shell’s $30 bln divestment program and is in line with Shell’s drive to simplify the upstream portfolio and re-shape the company into a world class investment,» Shell concluded.
Chrysaor said that production from the acquired assets is forecast to average just under 120,000 net barrels of oil equivalent per day for 2017, with current unit operating costs running at less than $15 a barrel.
Phil Kirk, CEO of Chrysaor, said: «With the acquisition of this package of high quality, low cost production assets, Chrysaor becomes the leading independent in the UK North Sea.»
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