Shell To Sell North Sea Assets To improve Portfolio

Dutch oil company, Royal Dutch Shell could sell some of its older, lower grade North Sea assets to improve the quality of its portfolio, CEO Ben van Beurden revealed.

Beurden said this move is part of a two-year programme to help finance its purchase of gas major BG Group.

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Ben van Beurden, chief executive officer of Royal Dutch Shell, listens to a question during a news conference in Rio de Janeiro, Brazil, February 15, 2016.REUTERS/Sergio Moraes
Ben van Beurden, chief executive officer of Royal Dutch Shell, listens to a question during a news conference in Rio de Janeiro, Brazil, February 15, 2016.REUTERS/Sergio Moraes

After completing the $52 billion acquisition of BG in February, Shell said it would sell $30 billion in assets between 2016 and 2018 to help finance the deal and to maintain its dividend following a sharp drop in oil prices since mid-2014.

“The North Sea for us will be an area where we will have to take a look, as we have to do with our entire conventional upstream, now that we have a much enlarged portfolio,” van Beurden told reporters at a conference.

BG assets Shell acquired in the North Sea are newer, have more running room and are of higher quality, so the company would look to sell some of its other properties there, he said.

 

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Daniel Enisan is a content writer at edliner.com. With a degree in mass communication, Daniel is a full breed journalist. Daniel is a realist, loves the use of sarcasm, a movie and music junkie. He is also a poet and a good listener.

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