Shell has agreed to sell off its interests in two oil fields to Norwegian firm OKEA for £442 million.
The Anglo-Dutch major will relinquish its entire 44.56% interest in Draugen and 12 % in Gjoa to the Trondheim-based company.
The deal is expected to go through later this year.
OKEA will become the new operator of Draugen.
Shell said that decommissioning costs associated with the assets was estimated to be in the region of £91m.
The Shell share of the assets’ production amounted to approximately 25 kboe/d in 2017, representing about 14% of Shell’s Norwegian production in 2017.
Andy Brown, Shell’s upstream director, said: “This deal is part of Shell’s global, value-driven $30bn divestment programme and is consistent with our strategy to high-grade and simplify our portfolio. Shell has a long and proud history in Norway. We continue to have strategic, long-term positions in Troll and Ormen Lange and are actively seeking new growth opportunities.”
Rich Denny, managing director of A/S Norske Shell, said: “We are pleased to have found a buyer with an experienced leadership team and with a business strategy that aligns very well with the opportunities offered by Draugen and Gjøa.
“We are happy that OKEA’s ambition is to uphold and strengthen Draugen’s footprint in mid-Norway. They will also be welcoming transferring staff in Kristiansund and Stavanger in order to leverage their substantial experience and competence for the safe and efficient operation of Draugen in the future. This deal is a good strategic move for both companies. Draugen has been a defining asset for Shell in Norway, and we are confident it will prove to be similarly important to OKEA as a springboard in further developing their operating capabilities on the Norwegian Continental Shelf.”