Oil giant Shell is mulling a stake sale in two U.S. Gulf of Mexico oil and gas developments, according to reports. The proposed sale would net Shell as much as $1.5 billion, Reuters reported, citing people familiar with the matter.
The oil major is planning to sell a stake in some aging oil assets as it focuses on newer and larger fields around the world, the report said. One of the nee developments is the giant Whale development in the Gulf which is expected to start production in 2024.
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Shareholders and regulators also have been pressuring Shell to pare back oil and gas operations and shift toward cleaner forms of energy.
Shell Has Begun Soliciting Buyer Interest For Its Auger Hub
Shell has begun soliciting buyer interest for its Auger hub and its 37.5% stake in the Conger field, which is operated by Hess Corp, having hired an investment bank to run an auction process that kicked off in recent weeks, said three sources.
No Guarantee Shell Will Be Able To Secure a Deal
The London-based company is targeting a valuation of around $1.5 billion from the sale of the fields, which have a combined output of around 50,000 barrels per day, two of the sources added.
The sources cautioned there was no guarantee Shell would secure a deal, and spoke on condition of anonymity to discuss private information.
Shell declined to comment.
Shell also has sought this year to divest stakes in two clusters of gas fields in the southern British North Sea, Reuters reported in February.
Last month, Shell said it had suspended plans to sell its onshore oil assets in Nigeria, to comply with a Nigerian Supreme Court ruling that it had to wait for the outcome of an appeal over a 2019 oil spill.