World of oil & gas ///

Shell will sell a package of UK North Sea assets to Chrysaor, in a deal worth up to $3.8 billion, including an initial consideration of $3.0 billion. The asset package consists of Shell’s interests in Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine, plus a 10% stake in Schiehallion. The decommissioning costs associated with the package are expected to be $3.9 billion, of which Shell will retain a fixed liability of $1 billion. Chrysaor will assume the remaining liability. The deal, which is expected to close in second-half 2017, has an effective date of July 1, 2016. Following its completion, Shell will retain a more focused presence in the UK North Sea, with production from the Schiehallion redevelopment and Clair Ridge project expected to come onstream.

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