A/S Norske Shell has completed the sale of its interests in Draugen and Gjøa fields offshore Norway for NOK 4.52 billion (about US$526 million) to OKEA AS, Shell said in a news release Nov. 30.
Completion of the deal marks Shell’s exit from its 44.56% operated interest in the Draugen Field and 12% non-operated interest in the Gjøa Field. The fields represented about 14% of A/S Norske Shell’s total production in 2017. Just more than 150 staff will transfer from Shell to OKEA, according to the release.
“Today’s deal completion was achieved despite a tight timeline from the sales and purchase agreement in June 2018. It was made possible by good collaboration between Shell and OKEA and with constructive dialogue with the Norwegian Authorities,” Rich Denny, managing director of A/S Norske Shell, said in the release.
The sale was part of Shell’s $30 billion divestment program.
The company also announced on Nov. 30 its exit from Ireland’s upstream sector, with the closure of an up to $1.3 billion deal with Canada Pension Plan Investment Board subsidiary Nephin Energy Holdings Ltd.
RELATED: Shell, Nephin Energy Holdings Complete $1.3 Billion Ireland Asset Sales Deal
Shell said it remains committed to Norway. Its commitments include serving as operator of Ormen Lange and Knarr fields and as partner in Troll, Valemon and Kvitebjørn. A/S Norske Shell continues to be the technical service provider of the Nyhamna Gas Processing Plant and partner in the Norwegian full-scale carbon capture and storage (CCS) project Northern Lights and CCS test facility at Mongstad, the release said.
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