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Maurel & Prom completes acquisition of Shell’s stake in Urdaneta West field in Venezuela

Published by , Editorial Assistant
Oilfield Technology,

Etablissements Maurel & Prom (‘Maurel & Prom’) announced in the press release published on 12 October 2018 the signature of a Share Sale and Purchase Agreement (the ‘SSPA’) for the acquisition of Shell Exploration and Production Investments B.V.’s (‘Shell’) 40% interest as ‘Shareholder B’ in Petroregional del Lago Mixed Company (the ‘Mixed Company’), which operates the Urdaneta West field in Lake Maracaibo, Venezuela (the ‘Field’).

Further to this publication, Maurel & Prom has announced that all condition precedents have been satisfied and that the acquisition has been completed.

The total consideration for the acquisition of Shell’s shares in the Mixed Company is €70 million, funded from Maurel & Prom’s existing cash resources and composed as follows:

  • €47 million which have been paid at closing of the transaction, and
  • €23 million payable in December 2019, on the anniversary date of the transaction closing.

Maurel & Prom Venezuela, subsidiary of Maurel & Prom, has replaced Shell as Shareholder B in the Mixed Company, with a 40% interest. Petróleos de Venezuela S.A. (‘PDVSA’), wholly owned subsidiaries Corporación Venezolana del Petróleo (‘CVP’) and PDVSA Social (‘PDVSAS’) collectively referred to as ‘Shareholder A’, jointly own the remaining 60% stake of the Mixed Company.

Michel Hochard, Chief Executive Officer of Maurel & Prom, said: “This transaction fits Maurel & Prom’s growth strategy, focusing on opportunities with significant potential in regions and countries where we have operating experience. It provides us access to an established producing asset in a world class petroleum system, with a potential for significant production improvements. Investments in oil and gas projects require a long-term approach, and we expect that jointly with PDVSA and its subsidiaries we will help boost the redevelopment of the Field in the years to come. We have operated in Venezuela in the past and our experience of the region make us confident in the ability to transform this opportunity into a successful project.”

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