5th Nov 2010 07:00
SHELL TO SELL GULF OF MEXICO PROPERTIES TO W&T OFFSHORE, INC.
The Hague, 4 November 2010 - Shell announced today that it has agreed to sell its interest in six Gulf of Mexico oil and gas fields to W & T Energy VI, LLC, a wholly owned subsidiary of W&T Offshore Inc., for $450 million, with an effective date of September 1, 2010, as part of an ongoing portfolio restructuring and focus on capital efficiency.
"We are focusing our investment on the most promising growth opportunities and that means selling some fields that no longer fit our strategy," said Marvin Odum, Director Upstream Americas. "This is part of our plan to divest $7-8 billion in assets worldwide in 2010 and 2011."
The divested fields are Tahoe, Southeast Tahoe, Droshky, Marlin and Dorado, and a Gulf of Mexico producing shelf property, and are predominately mature gas fields. These fields produce some 18,000 barrels of oil equivalent per day (boe /d) and have proved reserves of some 27 million barrels of oil equivalent (net to Shell's interest). A definitive agreement has been signed for all fields except for one of the fields, a Gulf of Mexico producing shelf property and associated assets, which is the subject of a Letter of Intent and is currently anticipated to close before year-end.
Shell continues to make significant investments in the deep water Gulf of Mexico, where the company currently produces some 230,000 barrels of oil equivalent per day. Perdido, the most recent addition to the Shell Deep Water portfolio, began production earlier this year. Shell recently took the final investment decision on the 100,000 boe/d Mars B deepwater development (Shell 71.5%). Shell has also recently announced the potential for two new 100,000 boe /d deep water production hubs at the Appomattox (Shell 80%) and Vito fields (Shell 55%); following successful exploration and appraisal work on those prospects.
Contacts: Shell Investor Relations: The Hague Tjerk Huysinga +31 70 377 3996 / +44 207 934 3856 US Harold Hatchett +1 713 241 1019 Shell Media Relations: Shell US Media Line +1 713-241-4544 International, UK, European Press +31 70 377 3600
Notes to Editors
The assets being divested include:
* Tahoe (Shell 70%) & SE Tahoe (Shell 100%) fields * Main Pass 252 Complex & Bud Pipeline (Shell 100%) * Non-operated position in the Marlin (various Shell ownership 11.5% - 25%) & Dorado oil assets (Shell 25%) * A 6.25% over-riding royalty interest in the Droshky field
Subject to Letter of Intent:
* Gulf of Mexico producing shelf property and associated assets (Shell 64.3%)
Royal Dutch Shell plc
Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 90 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects. For further information, visit www.shell.com
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