NEW YORK/LONDON, July 20 (Reuters) – Shell (SHEL.L) is exploring a sale of its stakes in two U.S. Gulf of Mexico oil and gasoline developments which might increase as a lot as $1.5 billion for the power main, individuals conversant in the matter mentioned on Wednesday.
Potential divestments of some growing older belongings would enable the corporate to concentrate on newer and bigger fields world wide, together with its big Whale improvement within the Gulf which is predicted to start out manufacturing in 2024, the sources mentioned.
Shareholders and regulators even have been pressuring Shell to pare again oil and gasoline operations and shift towards cleaner types of power.
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Shell has begun soliciting purchaser curiosity for its Auger hub and its 37.5% stake within the Conger subject, which is operated by Hess Corp (HES.N), having employed an funding financial institution to run an public sale course of which kicked off in latest weeks, mentioned three sources.
The London-based firm is focusing on a valuation of round $1.5 billion from the sale of the fields, which have a mixed output of round 50,000 barrels per day, two of the sources added.
The sources cautioned there was no assure Shell would safe a deal, and spoke on situation of anonymity to debate personal info.
Shell declined to remark.
Shell additionally has sought this 12 months to divest stakes in two clusters of gasoline fields within the southern British North Sea, Reuters reported in February. learn extra
Final month, Shell mentioned it had suspended plans to promote its onshore oil belongings in Nigeria, to adjust to a Nigerian Supreme Court docket ruling that it needed to anticipate the end result of an attraction over a 2019 oil spill. learn extra
With crude and pure gasoline costs excessive, the backdrop to discover potential gross sales is favorable. Nevertheless, worth volatility has made it more durable for potential consumers and sellers to strike offers, trade sources have mentioned.
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Reporting by David French in New York and Ron Bousso in London; Modifying by David Gregorio
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