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Shell sells Corrib stake to Canadian pension fund for €1.08bn

By Joe Brennan

Royal Dutch Shell has sold its 45 per cent interest in the Corrib gas field to a unit of Canada Pension Plan Investment Board (CPPIB) in a deal worth up to $1.23 billion (€1.08 billion), as the group continues to sell off non-core assets.

The deal includes an initial consideration of $947 million and additional payments of up to $285 million over the next eight years, subject to gas price and production. It is subject to partner and regulatory consents and is expected to be completed in the second quarter of 2018.

“This transaction is part of our strategy to reshape Shell and to deliver a world class investment case,” said Shell’s upstream director, Andy Brown. “It demonstrates the strong momentum behind our three-year $30 billion divestment programme. At the half-way point, we have now announced deals valued at more than $20 billion.”

Natural gas started to flow from the controversial Corrib gas field off Co Mayo at the end of 2015 for the first time since it was discovered almost two decades earlier. The project had been dogged by opposition, sometimes turning violent. Between August 2005 and June 2014, the policing of protests and protection of workers at project sites had cost the State €16.4 million, mainly due to the deployment of gardaí.

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