Shell sells a further $1.3bn in oil assets

Shell barrels
Credit: Johnny Greig/Alamy

Royal Dutch Shell has pruned more than a billion dollars from its global oil portfolio by selling off assets in Norway and Malaysia.

The oil major’s Norwegian subsidiary, Norkse Shell, reached an agreement with Okea to sell its entire 44.56pc stake in the Draugen field and a 12pc share in the Gjøa field for $556m.

Meanwhile, Shell’s Malaysian subsidiary completed the sale of its 15pc in Malaysia LNG Tiga to the Malaysian Sarawak State Financial Secretary for $750m.

The two asset sales keep the oil major firmly on track to shrug off a total of $30bn worth of oil and gas assets by the end of the year, in line with the ambitious three-year timescale it set out in 2016.

At the time Shell was wracked with debt following its mega deal to acquire gas giant BG Group in a $54bn takeover in during the oil market crash.

The oil group does not provide a running tally of its asset sales but said in its first quarter results that it has completed $26bn worth of sales and announced another $4bn. In addition, $2bn worth of deals were “well-advanced” by the end of March.

Shell’s more than $26bn of sales include the $3bn UK North Sea exit, in its first major retreat from the basin after 45 years. The oil giant stressed that it remains committed to the UK North Sea where it is developing new projects west of Shetland.

Shell echoed the assurance of its ongoing dedication to the Norwegian North Sea too.

It will continue to operate the giant Ormen Lange and Knarr oil and gas fields, and will remain a partner in the Troll, Valemon and Kvitebjørn fields.

In addition, Shell is drilling two exploration wells on the Norwegian continental shelf this year.

License this content