Shell agrees to sell its stake in Irish gas venture for up to $1.23bn

Courtney Goldsmith
Follow Courtney
Shell Announce Record Profits
Shell is halfway through a $30bn divestment programme (Source: Getty)

Oil major Royal Dutch Shell today revealed it will sell its stake in a gas project in Ireland for up to $1.23bn (£957m).

The Anglo-Dutch company will sell Shell E&P Ireland, which holds a 45 per cent interest in the Corrib gas venture, after reaching an agreement with a wholly-owned subsidiary of Canada Pension Plan Investment Board (CPPIB).

"This transaction is part of our strategy to reshape Shell and to deliver a world class investment case," said the company's upstream director, Andy Brown.

The oil company is halfway through a three-year $30bn divestment programme to cut debt following its $54bn acquisition of BG Group, and so far it has announced deals valued at more than $20bn.

"This transaction is consistent with Shell’s strategy to concentrate our upstream footprint where we can add most value. I’m confident that Corrib will continue to deliver energy successfully to the people and businesses of Ireland," Brown said.

Shell's stake in the gas project, which is located 83 kilometres off the northwest coast of Ireland, represented around 27,000 barrels of oil equivalent per day in 2016.

​The field has a gross plant capacity of about 350m cubic feet of natural gas per day, and it provides approximately 60 per cent of Ireland’s natural gas consumption.

The transaction will result in an impairment charge of around $350m for Shell, which will be taken in the second quarter of 2017.

The deal is subject to regulatory approval, and it is expected to complete in the second quarter of 2018.

Read more: Shell-Exxon joint venture to appeal Dutch plan to lower gas production

Related articles