Shell divests Gulf of Mexico assets for $425 million plus royalty interests
Aug 29, 2016
Deal marks progress against divestment target.
Royal Dutch Shell plc, through its affiliate Shell Offshore Inc. (Shell), today announces it has an agreement to sell 100 percent of its record title interest in Gulf of Mexico Green Canyon Blocks 114, 158, 202 and 248, referred to as the Brutus/Glider assets, to EnVen Energy Corporation, through its affiliate EnVen Energy Ventures, LLC. In line with Shell’s global divestment plans, this transaction includes $425 million in cash.
The transaction is expected to close in October.
The Brutus/Glider assets include the Brutus Tension Leg Platform (TLP), the Glider subsea production system, and the oil and gas lateral pipelines used to evacuate the production from the TLP. The Brutus/Glider assets have a combined current production estimate of approximately 25,000 barrels of oil equivalent per day (boe/d).
Shell is a leading, global deep-water operator, with a strong development pipeline and production on-stream in the Gulf of Mexico, Brazil, Nigeria, and Malaysia as well as exploration and appraisal opportunities. Shell currently produces approximately 600,000 boe/d and plans to increase production to more than 900,000 boe/d by the early 2020s from already discovered, established reservoirs.
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