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Shell’s 40% share in the venture represents 27,000 boe/d

13/07/2017

Shell sells Corrib gas stake for US$1.23bn

Marks Shell’s exit from upstream in Ireland

Helen Tunnicliffe

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SHELL has sold its 45% stake in Ireland’s Corrib gas venture to the European subsidiary of the Canada Pension Plan Investment Board for up to US$1.23bn.

The price includes an initial payment of US$947m, up to €150m (US$170m) dependent on energy prices remaining above €2.03/kWh from 2018–22, and €100m if certain production thresholds are exceeded. The new operator of the field will be Vermilion, which has an 18.5% share in the field. Statoil Exploration Ireland retains its 36.5% share. In 2016, Shell’s 40% share in the venture represents 27,000 boe/d. Shell Energy Europe, has signed an offtake agreement for 40% of the Corrib field’s production for three years following completion of the sale.

The sale of the field marks Shell’s exit from upstream oil and gas in Ireland. Shell upstream director Andy Brown said that the sale is consistent with the company’s strategy to focus on areas where it can add the most value.

The deal is expected to be completed by Q2 2018, subject to regulatory approval.

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