Press

Shell Completes Sale of Draugen and Gjøa Interests to OKEA

Posted by OilVoice Press - OilVoice

30-Nov-2018


A/S Norske Shell has completed the sale of its interests in the Draugen and Gjøa fields in Norway for 4,52 Billion NOK (~US$526 million*) to OKEA AS.

With the deal completion, Shell exits its 44.56% operated interest in the Draugen field and 12% non-operated interest in the Gjøa field, representing approximately 14% of A/S Norske Shell's total production in 2017. 153 staff transfer from Shell to OKEA on their contracts of employment and with full continuity of service.

“Today's deal completion was achieved despite a tight timeline from the Sales and Purchase Agreement in June 2018. It was made possible by good collaboration between Shell and OKEA and with constructive dialogue with the Norwegian Authorities”, said Rich Denny, Managing Director of A/S Norske Shell.

Shell remains committed to Norway, including as operator of Ormen Lange and Knarr and as partner in Troll, Valemon and Kvitebjørn. 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 Northern Lights and CCS test facility at Mongstad.

This deal is part of Shell's global, value-driven $30 billion divestment programme, and consistent with the strategy to high-grade and simplify the portfolio.

* The transaction is NOK denominated and all USD figures are based on a NOK/USD exchange rate of 8.59 (updated with FX exchange rate changes since the announcement in June). All amounts have been rounded.

Notes to Editors:

The transaction comprises three key elements:

  1. Cash consideration of US$526 million* (NOK 4,520 million), as per exchange rate Nov 26.
  2. A future payment by Shell to OKEA of US$43 million* (NOK 375 million) subject to CPI indexation upon OKEA completing the decommissioning of the assets; and
  3. Shell retaining 80% of the decommissioning liability of the two assets up to an after-tax cap of US$ 74 million (NOK 638 million) subject to CPI indexation.

The amounts in items (2) and (3) are undiscounted.



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Norske ShellShellRoyal Dutch ShellDivestmentGjoa FieldGjoaOKEADraugen

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