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FT: Shell to sell $15B of assets, including some North Sea fields

  • Royal Dutch Shell (RDS.A, RDS.B) wants to sell some of its North Sea oil fields as part of a $15B divestment program over the next two years, FT reports.
  • Shell reportedly would divest mature upstream assets in the North Sea and elsewhere, more of its refining portfolio and some projects that have not yet reached final investment decision.
  • Analysts believe some of Shell's Nigerian oil blocks plus a 23.1% stake in Woodside Petroleum (WOPEF, WOPEY) - worth more than $6B at current prices - could be put on the block, Reuters reports.
  • "In the North Sea, something like 80% of [Shell's] production comes from 20% of its asset base, so there's a long tail of smaller positions," Santander's Jason Kenney says, adding that he expects Shell under new CEO Ben Van Beurden to focus on capital discipline, better returns and selling peripheral assets.
Comments (2)
  • fmhaynes11
    , contributor
    Comments (433) | Send Message
     
    Why are they doing this? Where do they believe the money can be better invested?

     

    Will it become part of a share repurchase or do they intend to go whole hog into the Russian shale play or is it something else?
    15 Jan, 01:55 PM Reply Like
  • lukemace1
    , contributor
    Comments (2) | Send Message
     
    just sell everything
    17 Jan, 12:01 PM Reply Like
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