Shell completes divestment of upstream interests in Ireland for up to US$1.3 billion

Published by Aimee Knight, Editorial Assistant
Oilfield Technology, Monday, 03 December 2018 10:00

Royal Dutch Shell plc (Shell), through its affiliate Shell Overseas Holdings Limited, has completed the sale of its shares in Shell E&P Ireland Limited (SEPIL), which holds a 45% interest in the Corrib gas venture, for up to US$1.3 billion (€1.14 billion), to Nephin Energy Holdings Limited (NEHL), a wholly-owned subsidiary of Canada Pension Plan Investment Board (CPPIB). Completion follows receipt of all necessary partner and regulatory consents and the transaction’s effective date is 1 January 2017.

The transaction includes an initial consideration of US$958 million (€840 million), interest of US$54 million (€47 million), and additional payments of up to US$285 million (€250 million) between 2018-2025, subject to gas price and production. Completion of the deal represents Shell’s exit from the upstream sector in Ireland.

The sale will contribute to Shell’s US$30 billion divestment target for 2016-2018.

Shell Energy Europe Limited (SEEL) has signed an offtake agreement to purchase Corrib gas following completion.

Shell retains a presence in Ireland through its aviation joint venture, Shell and Topaz Aviation Ireland Limited.

Read the article online at: https://www.oilfieldtechnology.com/special-reports/03122018/shell-completes-divestment-of-upstream-interests-in-ireland-for-up-to-us13-billion/