Shell sells its stake in Philippine gas fields

Sinopec News Network reported on June 1st, according to An Xunsi news, according to the "Business Daily" report, Royal Dutch Shell has agreed to sell its shares in an offshore natural gas field in the Philippines for US$460 million, which is a reduction in its oil and gas business.

Shell sold 45% of its shares in Service Contract 38 (SC38) to a subsidiary of the Udenna Group, which already holds 45% of the project.

Shell said in a statement that the basic consideration for the sale is US$380 million.

The transaction will be completed by the end of 2021.

Wael Sawan, Shell’s head of oil and gas production, said the transaction “is consistent with Shell’s efforts to shift its upstream business portfolio to focus on nine core businesses”.

As previously informed by MRC, Shell is reducing its refining and chemical operations as part of a broader shift by the oil majors to reduce hydrocarbon emissions and switch to low-carbon fuels.

Last week, Shell agreed to sell its controlling stake in the Texas refinery to its partner Petroleum Mexico (Pemex) for $596 million.

Zhu Jiani is an excerpt from An Xun Si

The original text is as follows:

　　Shell sells its stake in Philippine gas field in line with its strategy to narrow oil and gas operations

　　Royal Dutch Shell has agreed to sell its stake in an offshore gas field in the Philippines for USD460m as part of its strategy to narrow its oil and gas operations, according to BusinessDay.

　　Shell sold its 45% stake in Service Contract 38 (SC38), a deep-water licence that includes the producing Malampaya gas field, to a subsidiary of the Udenna Group, which already holds a 45% stake in the project.

　　The base consideration for the sale is USD380m, with additional payments of up to USD80m between 2022 and 2024 contingent on asset performance and commodity prices, Shell said in a statement.

　　The deal is due to be completed by the end of 2021.

　　Wael Sawan, Shell's head of oil and gas production, said the deal “is consistent with Shell's efforts to shift our upstream portfolio to one that is focused on nine core positions.

　　As MRC informed previously, Shell is shrinking its refining and chemicals portfolio as part of a broader shift by oil majors to reduce hydrocarbon emissions and shift to lower-carbon fuels.

　　Last week, Shell agreed to sell its controlling interest in a Texas refinery to partner Petroleos Mexicanos (Pemex) for about USD596 million.