Sector News

Shell to sell certain Gulf of Mexico assets to EnVen Energy

August 30, 2016
News

Royal Dutch Shell Plc said it has agreed to sell certain assets in the Gulf of Mexico to independent oil and gas company EnVen Energy Corp for $425 million, plus royalty interests.

Houston-based EnVen plans to buy the Brutus/Glider assets, which include a subsea production system, and the deal is expected to close in October.

The Brutus/Glider assets have a combined current production estimate of about 25,000 barrels of oil equivalent per day (boe/d), which is about 4 percent of Shell’s total production.

The company plans to sell some $30 billion worth of assets over the next three years or so to help pay for its $54 billion acquisition of BG Group in February. The deal forced Shell to sharply increase its borrowing in order to maintain its dividend policy at a time of low oil prices.

The Anglo-Dutch company plans to divest $6-$8 billion of assets this year, its Chief Financial Officer Simon Henry said in July.

By Vishaka George in Bengaluru and Ron Bousso

Source: Reuters

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