Shell sells stake in Gulf of Mexico field for US$965m

Bengaluru

ROYAL Dutch Shell has agreed to sell its stake in the Caesar Tonga field in the Gulf of Mexico for US$965 million in cash to a subsidiary of Israel's energy conglomerate Delek Group.

Company unit Shell Offshore will sell its 22.45 per cent non-operated interest in a deal, which is likely to close by the end of the third quarter of 2019, Shell said in a statement.

The oil and gas company has been selling its assets as part of a three-year, US$30 billon divestment plan that began in 2015 after the takeover of BG Group Plc.

Last year, it sold its Danish upstream business to Norwegian Energy in a deal valued at US$1.9 billion.

The Caesar Tonga field has 30 more years of life and assuming no change in the rate of production, Delek's interest reflects 78 million barrels of oil equivalent reserves, Israel's first government-owned gas retailer said.

Chief executive officer of Delek Asaf Bartfeld said the deal, along with the exploration activity in the North Sea and the Gulf of Mexico, would beef up its position in the international energy market. The deal is subject to the right of refusal by Anadarko Petroleum Corp, Equinor ASA and Chevron Corp who own the rest of the field. REUTERS