Shell divests $425m in cluster of Gulf of Mexico assets

Francesca Washtell
Follow Francesca
The sun sets over an oil platform waitin
Shell has sold four blocks in the Gulf of Mexico (Source: Getty)

Royal Dutch Shell has divested $425m (£324m) plus royalty interests in a cluster of its Gulf of Mexico-based assets.

The four blocks sold by the oil giant produce approximately 25,000 barrels of oil equivalent (boe) per day. This is equivalent to 10 per cent of its deepwater production in the region and four per cent of its global deepwater production.

Shell has agreed to sell 100 per cent of its record title interest in the Gulf of Mexico Brutus/Glider assets, which include a subsea production system and pipe network, comprised of Green Canyon blocks 114, 158, 202 and 248.

Read more: Shell blames oil price and BG costs for 72 per cent drop in earnings

The company has sold the assets to EnVen Energy Corporation, through its affiliate EnVen Energy Ventures, and the transaction is expected to be completed in October.

The company said the deal marks progress against its multi-billion dollar divestment target, following its record takeover of BG Group for $54bn earlier this year.

Shell produces approximately 600,000 boe per day and plans to increase production to more than 900,000 boe per day in the early 2020s from already discovered and established reservoirs.