Royal Dutch Shell plc (Shell), by means of its affiliate Shell Overseas Holdings Limited, has reached an settlement with publicly listed Norwegian Energy Company ASA (Noreco), to promote its shares in Shell Olie-og Gasudvinding Danmark B.V. (SOGU) for a consideration quantity of $1.9 billion. SOGU is a wholly-owned Shell subsidiary that holds a 36.eight% non-operating curiosity within the Danish Underground Consortium (DUC).
The sale is topic to regulatory approval and anticipated to be accomplished in 2019. The transaction’s efficient date is Jan. 1, 2017.
Andy Brown, Shell’s Upstream irector, mentioned: “Today’s announcement is per Shell’s technique to simplify its portfolio by means of a $30-billion divestment program, and contributes to our objective of reshaping the corporate right into a world class funding case.’’
As a part of the settlement, Noreco will assume all of Shell’s present commitments and obligations, together with the Tyra redevelopment and the decommissioning prices related to the belongings.
The sale represents manufacturing of some 67,000 boed (Shell share) in 2017. Under the settlement, Shell Trading and Supply and Shell Energy Europe Limited will proceed to have oil and gasoline lifting rights from the SOGU belongings for a interval after completion.
The transaction is a share sale which implies that, upon completion, native SOGU employees primarily devoted to DUC will proceed to be employed by their present entity, which shall be owned by Noreco at completion.
“We are very proud and grateful to have been a part of the Danish Underground Consortium since its inception 5 many years in the past’’ mentioned Shell Country Chair Lee Hodder. “The DUC continues to supply materials tax revenues, jobs and power safety to Denmark, and the Tyra redevelopment will make sure that this would be the case for many years to return. I want to pay tribute to the employees, stakeholders, companions and authorities who’ve contributed.’’
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This transaction has no direct influence on Shell’s different companies in Denmark. Following completion, Shell will retain a Downstream presence in Denmark by means of A/S Dansk Shell, which incorporates the Fredericia refinery. The community of Shell-branded retail stations in Denmark continues to be operated by DCC. Shell will proceed to judge choices to develop new enterprise in Denmark if related alternatives current themselves.
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