THE HAGUE (dpa-AFX) - Royal Dutch Shell plc (RDS-B, RDSB.L, RDSA.L, RDS-A), through its affiliate Shell Overseas Holdings Limited, has reached an agreement with Norwegian Energy Company ASA (Noreco), to sell its shares in Shell Olie-og Gasudvinding Danmark B.V. or SOGU for a consideration amount of $1.9 billion.
SOGU is a wholly-owned Shell subsidiary that holds a 36.8% non-operating interest in the Danish Underground Consortium or DUC.
The sale is subject to regulatory approval and expected to be completed in 2019. The transaction's effective date is 1 January 2017.
Andy Brown, Shell's Upstream Director, said: 'Today's announcement is consistent with Shell's strategy to simplify its portfolio through a $30 billion divestment programme, and contributes to our goal of reshaping the company into a world class investment case.'
As part of the agreement, Noreco will assume all of Shell's existing commitments and obligations, including the Tyra redevelopment and the decommissioning costs associated with the assets.
The sale represents production of some 67,000 boe/d (Shell share) in 2017. Under the agreement, Shell Trading and Supply and Shell Energy Europe Limited will continue to have oil and gas lifting rights from the SOGU assets for a period after completion.
Shell noted that the transaction has no direct impact on its other businesses in Denmark. Following completion, Shell will retain a Downstream presence in Denmark through A/S Dansk Shell, which includes the Fredericia refinery. The network of Shell-branded retail stations in Denmark continues to be operated by DCC. Shell will continue to evaluate options to grow new business in Denmark if relevant opportunities present themselves.
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