Royal Dutch Shell plc has completed its sale of a 45 percent interest in the Corrib Natural Gas Field in Ireland to Nephin Energy Holdings Ltd (NEHL), an affiliate of Canada Pension Plan Investment Board (CPPIB).
The deal, announced last year, is valued at up to US$1.3 billion (€1.14 billion).
In a separate statement, Calgary-based oil and gas company Vermilion Energy Inc, CPPIB’s partner in the transaction, said it assumed management of the Corrib project.
As a result, Vermilion will hold a 20 percent operated stake in the project, while NEHL will hold a 43.5 percent non-operated stake. The rest will continue to be held by Norway’s Equinor ASA.
Shell completes divestment of upstream interests in Ireland for up to $1.30 billion
Nov 30, 2018
Royal Dutch Shell plc (Shell), through its affiliate Shell Overseas Holdings Limited, has completed the sale of its shares in Shell E&P Ireland Limited (SEPIL), which holds a 45% interest in the Corrib gas venture, for up to $1.30 billion (€1.14 billion), to Nephin Energy Holdings Limited (NEHL), a wholly-owned subsidiary of Canada Pension Plan Investment Board (CPPIB). Completion follows receipt of all necessary partner and regulatory consents and the transaction’s effective date is 1 January 2017.
The transaction includes an initial consideration of $958 million (€840 million), interest of $54 million (€47 million), and additional payments of up to $285 million (€250 million) between 2018-2025, subject to gas price and production. Completion of the deal represents Shell’s exit from the upstream sector in Ireland.
The sale will contribute to Shell’s $30 billion divestment target for 2016-2018.
Shell Energy Europe Limited (SEEL) has signed an offtake agreement to purchase Corrib gas following completion.
Shell retains a presence in Ireland through its aviation joint venture, Shell and Topaz Aviation Ireland Limited.
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