Shell Expects $1.5bn from Asset Sales in Gulf of Mexico
Shell is looking forward to raking in about $15billion representing its interests in two operating oil and gas projects in the U.S. Gulf of Mexico.
Quoting reliable sources, Reuters said the supermajor operator in the Gulf of Mexico, is looking to sell stakes in more mature developments – its Auger hub and the minority non-operational stake in the Conger field – to focus on newer projects.
Auger is one of Shell’s production platforms in the Gulf of Mexico, while Conger is operated by Hess Corporation and Shell holds 37.5% in the field. The two fields have a combined production of about 50,000 barrels per day (bpd), per Reuters estimates.
The Gulf of Mexico is still a core area of operations for Shell, which approved an investment in developing the deep-water Whale discovery last year. The Whale development is scheduled to begin production in 2024 and is expected to reach peak production of approximately 100,000 barrels of oil equivalent per day (boe/d), Shell said.
Equinor will retain 49% interest in the project, and Shell will become the new operator of the field located in the Garden Banks area. Equinor and Shell have agreed to rename the North Platte development to the Sparta development.
Earlier this year, French major TotalEnergies withdrew from the project, releasing all its equity to Equinor. Shell is not the only company looking to sell assets in the Gulf these days.
Also, ConocoPhillips is considering a sale of its minority stake in the Shell-operated Ursa platform in the Gulf of Mexico, which—if done—would mark the exit of ConocoPhillips from U.S. Gulf offshore operations, sources with knowledge of the deliberations also told Reuters.