Shell said on Wednesday it has reached an agreement with the Palestine Investment Fund to sell its entire stake in the Gaza Marine licence, offshore Palestine.
The U.S oil and gas company said that the asset sale of its 90 per cent interest, completed through its affiliate BG Great Britain Limited, is part of its plan to simplify and improve the quality of its portfolio.
The company didn't disclose the value of the sale and said that the equity was transferred to the Palestine Investment Fund at the signing of the sale and purchase agreement.
Shell said that the divesting of the Gaza Marine licence will also help it to concentrate its upstream operations where the company can be most competitive and build a world-class investment case.
The Gaza Marine gas field is located 30km off the coast of the Gaza Strip, in the eastern Mediterranean Sea, at a water depth of 603 metres. The development of the Gaza field has been on hold for several years due to disputes between Israel and the Palestinians.
The Palestinian Authority awarded BG the exploration licence for the entire marine area offshore Gaza in 1999 with a 90 per cent interest. The 25-year licence provides BG with the right to explore the area, develop gas fields, and build the necessary infrastructure.