Jul 12, 2017
Shell sells stake in Irish gas field to help cut debt
Royal Dutch Shell has raised a further $1.23bn in support of its debt-reduction drive with a deal to sell its stake in Ireland's Corrib gas field to a Canadian pension fund. Shell has made progress in reducing debts since acquiring BG Group for £35bn last year but its balance sheet remains under pressure from weak oil prices and hefty dividend commitments. Operational control of the field will be transferred from Shell to Vermilion, the Canada-based oil and gas company, which owns 18.5 per cent of the asset and will acquire a further 1.5 per cent share from CPPIB as part of the deal. Shell will receive an initial €830m - or $947m based on the exchange rate agreed as part of the deal - with a further €250m dependent on future gas prices and production levels between 2018 and 2025. Other disposals by Shell this year have included the $7.25bn sale of oil sands assets in Canada in March and more than $5bn of oil and gas fields in the North Sea, Thailand and Gabon.
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