20th Jun 2018 12:36
LONDON (Alliance News) - Royal Dutch Shell PLC on Wednesday announced the sale of its interests in two Norwegian assets the same day it said it would be selling its stake in a Malaysian project.
Shell is selling its entire 45% stake in the Draugen oil field and its 12% interest in the Gjoa gas field to Okea AS for a combined USD556 million.
Decommissioning costs for the assets are estimated to be around USD120 million after-tax, and Shell will keep 80% of this liability with Okea paying the rest.
Shell said it remains committed to Norway, but the sales form part of its USD30 billion global divestment programme as it looks to simplify its portfolio.
Earlier Wednesday, the oil major said it has sold its 15% stake in Malaysia LNG Tiga Sdn Bhd to Sarawak State Financial Secretary for USD750 million. The project is majority owned by Malaysian state oil firm Petroliam Nasional Bhd, or PETRONAS.
Both deals are a continuation of a stream of asset sales so far this year. In early May, Shell sold its entire stake in Canadian Natural Resources for USD3.3 billion, while in April it sold its Argentinian downstream business for USD950 million.
In March, it disposed of its 20% stake in Iraq's West Qurna 1 oil field for USD406 million, and the same month the Financial Times reported Shell was to leave New Zealand, selling its assets there for USD578 million.
Shell 'A' and 'B' shares were both down 0.1% Wednesday at 2,560.00 pence 2,660.00p respectively.
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