Shell exits Philippine gas field in $460 mln deal

Royal Dutch Shell (RDSa.L) has agreed to sell its stake in a offshore gas field in the Philippines for $460 million as part of its strategy to narrow its oil and gas operations.

Shell sold its 45% stake in Service Contract 38 (SC38), a deep water licence which 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 $380 million, with additional payments of up to $80 million between 2022 to 2024 contingent on asset performance and commodity prices, Shell said in a statement.

The deal is targeted to complete 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.”

Our Standards: The Thomson Reuters Trust Principles.

Source: https://www.reuters.com/business/energy/shell-exits-philippine-gas-field-460-mln-deal-2021-05-20/

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