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Shell, Exxon launch joint sale of UK, Dutch North Sea assets -sources

Sep 27th, 2022
by John Donovan.

Reuters

Shell, Exxon launch joint sale of UK, Dutch North Sea assets -sources

Ron Bousso: Tue, September 27, 2022 at 4:16 PM

LONDON, Sept 27 (Reuters) – Shell and Exxon Mobil have launched a joint sale process of a large package of offshore natural gas assets in the southern UK and Dutch North Sea, three industry and banking sources said.

The two companies have hired investment bank Jefferies to run the sale, which could raise over $2 billion, the sources said.

Launched earlier this month, the sale comes after Shell and Exxon independently ran initial sales processes for their British and Dutch assets.

Shell declined to comment. Jefferies declined to comment. Exxon did not immediately reply to a request for comment.

In July, Shell and Exxon launched the sale of the 50-50 NAM joint venture in the Netherlands, operator of the Groningen gas field and one of Europe’s largest and oldest natural gas production companies.

The two companies have also separately put up for sale their stakes in their British southern North Sea gas hub, which include the Clipper Leman Alpha hubs as well as the Bacton terminal in eastern England, the sources said.

Reuters reported that Shell was preparing to launch the sale in February. [https://www.reuters.com/business/energy/exclusive-shell-moves-sell-british-north-sea-southern-gas-fields-sources-2022-02-15/ ]

The joint sale process which combines both basins hopes to draw bids from several oil and gas companies that have shown interest in the initial processes, the sources said.

The sales are part of the two companies’ drive to dispose of ageing oil and gas assets in an effort to cut costs and as they focus on newer, larger projects around the world.

(Reporting by Ron Bousso Additional reporting by Sabrina Valle in Houston Editing by Jason Neely)

SOURCE

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