Shell has agreed to sell its wholly-owned subsidiary, SOGU, that holds a 36.8 per cent non-operating interest in the Danish Underground Consortium (DUC) for US$1.9 billion to Norwegian Energy Company (Noreco).
The sale is subject to regulatory approval and expected to be completed in 2019.
Andy Brown, Shell’s Upstream Director, said: ‘’Today’s announcement is consistent with Shell’s strategy to simplify its portfolio through a $30 billion divestment programme, and contributes to our goal of reshaping the company into a world class investment case.’’
As part of the agreement, Noreco will assume all of Shell’s existing commitments and obligations, including the Tyra redevelopment and the decommissioning costs associated with the assets.
The sale represents production of some 67,000 boe/d (Shell share) in 2017. Under the agreement, Shell Trading and Supply and Shell Energy Europe Limited will continue to have oil and gas lifting rights from the SOGU assets for a period after completion.
This transaction has no direct impact on Shell’s other businesses in Denmark. Following completion, Shell will retain a downstream presence in Denmark through A/S Dansk Shell, which includes the Fredericia refinery.