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Shell places US Gulf of Mexico assets on sale to raise $1.5 billion

US Gulf of Mexico

Shell places US Gulf of Mexico assets for sale

According to persons familiar with the situation, Shell is considering selling its holdings in two US Gulf of Mexico oil and gas operations, which could bring in up to $1.5 billion for the energy giant. 
The business would be able to concentrate on larger and newer fields across the world, notably its massive Whale development in the Gulf, which is anticipated to begin production in 2024, if certain aged properties were to be sold off, according to the sources. 
Shell has come under pressure from shareholders and regulators to reduce its oil and gas operations and switch to more environmentally friendly energy sources. 
Having engaged an investment bank to oversee an auction process that began in recent weeks, Shell has started seeking buyer interest for the Auger hub and its 37.5 percent ownership in the Conger field, which is controlled by Hess Corp.

US Gulf of Mexico

According to two of the individuals, the London-based corporation hopes to receive roughly $1.5 billion for the sale of the fields, which have a total daily production capacity of about 50,000 barrels. 
The individuals, who spoke on the condition of anonymity to disclose private information, stressed that there was no assurance Shell would close a deal. 
According to Reuters’ February story, Shell has also attempted to sell its holdings in two groups of gas assets in the southern British North Sea. 
Following a judgement by the Nigerian Supreme Court that it must wait for the outcome of an appeal about an oil spill in 2019, Shell announced last month that it has put on hold plans to sell its onshore oil assets in Nigeria. 
The environment is conducive to investigate possible sales due to the high prices of petroleum and natural gas. However, industry insiders claim that price volatility has made it more difficult for prospective buyers and sellers to reach agreements.