Shell agrees to exit offshore Ireland Corrib venture

CPP Investment Board Europe has agreed to acquire Shell E&P Ireland’s 45% interest in the Corrib gas venture offshore northwest Ireland for up to $1.23 billion.

Offshore staff

THE HAGUE, the Netherlands – CPP Investment Board Europe, a subsidiary of Canada Pension Plan Investment Board (CPPIB), has agreed to acquire Shell E&P Ireland’s 45% interest in the Corrib gas venture offshore northwest Ireland for up to $1.23 billion (€1.08 billion).

The transaction includes an initial consideration of $947 million (€830 million) followed by additional payments of up to $285 million (€250 million) during 2018-2025, subject to gas prices and production.

Pending partner and regulatory consents, Shell should complete its exit from the upstream business in Ireland during 2Q 2018.

Shell’s share of production fromCorrib last year was around 27,000 boe/d. Shell Energy Europe has signed an offtake agreement for roughly 40% of Corrib’s production for up to three years.

Toronto-basedVermilion, one of the current partners, will become Corrib’s new operator.

Shell’s Upstream Director Andy Brown said the transaction “demonstrates the strong momentum behind our three-year $30-billion divestment program. At the half-way point, we have now announced deals valued at more than $20 billion.”

Following the transfer to Vermilion, ownership in Corrib would be as follows:

  • CPPIB would hold a 43.5% non-operated interest
  • Vermilion would hold a 20% operated interest
  • Statoil would continue to hold a 36.5% non-operated interest.

07/12/2017

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