Shell set to exit Statfjord

Norske Shell has agreed to sell its interests in the Statfjord field and associated Norwegian North Sea satellite fields to Centrica Resources for $225 million.

Offshore staff

OSLO, Norway -- Norske Shell has agreed to sell its interests in the Statfjord field and associated Norwegian North Sea satellite fields to Centrica Resources for $225 million. The transaction eases the Shell group’s global target of selling as much as $8 billion of assets during 2010-2011 to focus on major growth projects.

However, Norske Shell Managing Director David Loughman said, ’’Shell’s growth strategy for Norway is unchanged. Our production interests include Draugen and Ormen Lange where Shell is the operator, with equity in the Troll, Kvitebjørn, and Gjøa fields, and we are actively exploring in the Vøring basin as well as progressing existing discoveries.”

The sale to Centrica includes Shell’s 11.04% in production licence 037 (PL037) and corresponding shares in the underlying producing fields, including 9.44% of Statfjord. Licence partners in PL037 include operator Statoil, Petoro, ExxonMobil, and ConocoPhillips. Other partners in the satellite fields include Idemitsu, Total, and RWE DEA.

Statfjord produces gas plus quantities of oil and natural gas liquids. Shell’s share of production from the field last year was 13,300 boe/d.

Norske Shell is drilling the Dalsnuten exploration well in the Norwegian Sea this year, and is working to mature the Linnorm and Valemon fields towards final investment decisions.

09/17/2010

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