Shell is selling properties far and wide
The transaction has an economic date of 1 September 2017 and the net final consideration paid to Shell after adjustments for dividends the company received up to completion is approximately $640 million. SFS is an existing MLNG Tiga shareholder and with completion of this transaction, increased its shareholding in MLNG Tiga to 25%.
The other shareholders of MLNG Tiga are PETRONAS with 60% equity, Nippon Oil Finance (Netherlands) B.V. with 10% equity, and Diamond Gas (Netherlands) B.V., a Mitsubishi Corporation subsidiary with 5% equity. Malaysia LNG Sdn Bhd, a PETRONAS subsidiary, operates MLNG Tiga as part of the larger PETRONAS LNG Complex in Bintulu.
Shell announced that its affiliates, Shell Integrated Gas Thailand Pte Ltd and Thai Energy Company Ltd, have completed the sale of their 22.2222% interest in the Bongkot field and adjoining acreage offshore Thailand to PTT Exploration & Production Public Company Limited (PTTEP) and PTTEP International Limited, a wholly-owned subsidiary of PTTEP, for a transaction value of $750 million.
This sale, which consists of Shell’s stake in Blocks 15, 16 and 17 and Block G12/48, was announced on 31 January 2018 and completion follows receipt of the necessary regulatory approvals. PTTEP is the operator of Bongkot and with completion of this transaction, increased its stake in Bongkot to 66.6667%. The remaining 33.3333% belongs to Total.
Royal Dutch Shell plc, through its affiliate A/S Norske Shell, has reached an agreement with OKEA AS to sell its entire 44.56% interest in Draugen and 12.00% interest in Gjøa in Norway for $556* million (NOK 4,520 million).
The transaction is subject to regulatory approval and is expected to complete in Q4 2018. The transaction’s expected effective date is 1 January 2018. Upon completion OKEA will become the new operator of Draugen.
The decommissioning costs associated with the assets are currently estimated to be $120 million after-tax (NOK 1,000 million); Shell will retain 80% of this liability up to an agreed cap and OKEA will assume the remaining liability.
The Shell share of the assets’ production amounted to approximately 25 kboe/d in 2017, representing about 14% of Shell’s Norwegian production in 2017.
Shell remains committed to Norway, operating Ormen Lange and Knarr and partnering in Troll, Valemon and Kvitebjørn. In addition, Shell is drilling two exploration wells on the Norwegian continental shelf this year.
A/S Norske Shell continues to be the Technical Service Provider of the Nyhamna Gas Processing Plant, and partner in the Norwegian full-scale CCS project and CCS test facility at Mongstad. ■