Image courtesy of ShellShell Offshore, a unit of The Hague-based LNG giant Shell, agreed to sell its 22.45 percent non-operated interest in the Caesar-Tonga asset in the US Gulf of Mexico to Delek CT Investment, a Delek Group unit for $965 million.
The sales and purchase agreement is subject to certain conditions, including regulatory approvals.
The transaction is likely to close by the end of the third quarter of 2019, with an effective date of January 1, 2019, Shell said on Thursday.
“This transaction represents our continued focus on strategically positioning our deep-water business for growth and is consistent with our Upstream strategy of pursuing competitive projects that deliver value in the 2020s and beyond,” said Andy Brown, Upstream Director, Royal Dutch Shell.
“The sale will contribute to Shell’s ongoing divestment programme and allow us to direct resources to the areas where we see the most value in the longer term,” he said.
Shell’s global deep-water production is expected to exceed 900,000 barrels of oil equivalent per day (boe/d) by 2020 from already discovered and established reservoirs.
The portfolio includes growth opportunities in our US Gulf of Mexico, Brazil, Nigeria and Malaysia heartlands, as well as in emerging offshore basins such as Mexico, Mauritania and the Western Black Sea.