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Shell set to sell off three North Sea oil assets

February 14, 2014

SUZIE NEUWIRTH



ROYAL Dutch Shell yesterday confirmed its plans to sell off three UK North Sea assets, as part of its $15bn (9bn) divestment strategy.


The FTSE 100-quoted oil giant is selling Anasuria and Nelson, two assets near Aberdeen, as well as Sean, near Lowestoft in Suffolk.


"These changes are very much in line with our strategy and will allow us to focus on where we can add value to ensure a long term future for Shell in the basin," said Glen Cayley, vice president, upstream at Shell UK and Ireland. The disposals follow a report from the Organisation of Petroleum Exporting Countries yesterday which showed that the UK North Sea's oil production fell to its lowest level since 1977 last year and is set to decline even further this year. The oil and gas industry argues that the government has not provided enough support, resulting in less investment and fewer projects.


"The UK is an important business region for Shell, and our investment strategy continues to focus on assets where we see an opportunity for growth," said Cayley.


While North Sea reserves are depleting, global demand for oil has skyrocketed, causing global supplies to fall to their lowest level since 2008 in the last three months of 2013, according to a report from the International Energy Agency. "Far from drowning in oil, markets have had to dig deeply into inventories to meet unexpectedly strong demand," said the energy watchdog.


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Source: City A.M. (UK)


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