Shell Launches Norwegian Sale: Press
Shell plans to sells its shares in two oil and gas fields and two pipelines in Norway, Reuters reported on June 11 citing a sales document.
Shell is seeking a buyer for its 6.45% stake in the Kvitebjorn field and pipeline and its 3.225% share in the Valemon Unit and Valemon rich gas pipeline. The assets, operated by Norway's Equinor, are both past their prime.
Kvitebjorn was brought on stream in 2004 and its output peaked in 2012 at 45,300 b/d of oil and nearly 7bn m3 of gas. It has steadily declined since then, coming to 13,600 b/d and 4.5bn m3 last year, according to Norway's energy ministry. Production at Valemon peaked in 2016 and stood at 3,100 b/d of oil and 1.54bn m3 of gas last year.
Shell's interests are expected to raise $50-100mn, sources told Reuters.
The company is involved in 34 production licences off Norway, operating 14 of them. In November 2018 it shed its shares in the Draugen oil and Gjoa gas fields off Norway to private equity-backed Okea raising $526mn.
The Anglo-Dutch major cut its dividend for the first time in many decades this year following heavy impairments in the first quarter, but these assets are past their prime and so of greater interest to a smaller company looking for growth.