Shell completes North Sea asset sale to Chrysaor for up to $3.8bn

Royal Dutch Shell has completed the sale of a package of UK North Sea assets to Chrysaor for a total consideration totalling up to $3.8bn.

The sale includes an initial consideration of $3bn and a payment of up to $600m between 2018- 2021, which is subject to commodity prices. There is also the potential for further payments of up to $180m for future discoveries.

The deal was announced in January as part of a wider debt-reduction program.

At the time the oil giant also said it planned to offload its stake in the Bongkot gas field in Thailand to Kuwait Foreign Petroleum Exploration Company for $900m. However, its Thailand exit was scuppered after negotiations with Bangkok over the deal took too long.

The North Sea interests include Buzzard, Beryl, Bressay, Elgin-Franklin, J-Area, the Greater Armada cluster, Everest, Lomond and Erskine, and a 10 per cent stake in Schiehallion. The company retains some holdings in the area.

(Photo: Bloomberg)

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