Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Shell North Sea sale said to draw Ineos, Siccar Point bids

Shell news
Shell news

Royal Dutch Shell Plc has invited binding bids from parties including Ineos AG and Blackstone Group LP-backed Siccar Point Energy for the sale of some of its U.K. North Sea assets worth about $2 billion, according to people familiar with the matter.

North Sea-focused energy explorer Chrysaor Holdings Ltd. teamed up with US private equity firm EIG Global Energy Partners to submit a second-round bid before the Wednesday deadline, the people said, asking not to be identified as the information is private. No final agreements have been reached, they said.

The sale is a key part of Shell’s plans to divest about $30 billion in assets to help offset the $54 billion acquisition of BG Group this year, which increased debt and lowered its credit rating.

Chief Executive Officer Ben van Beurden has vowed to boost savings following a two-year slump in crude. The company posted its lowest quarterly earnings in 11 years in July.

Shell is selling a package of assets, including its stake in the Buzzard oil field, which it gained from BG Group, the people said. Shell also operates older fields in the U.K.’s North Sea, including the Brent project, which is used to set the global price benchmark, according to its website.

“Shell is continually evaluating its portfolio and is in contact with other parties regarding potential portfolio opportunities,” the company said in an e-mailed statement. “We have previously stated that a review of all assets, including those in the North Sea, is underway as part of our commitment to sell $30 billion of assets.”

The company agreed to sell its Brutus/Glider operation in the Gulf of Mexico for $425 million in August to EnVen Energy Corp. The field pumps the equivalent of 25,000 barrels of oil a day, or 5.8 percent of Shell’s output in the Gulf of Mexico.

Representatives for Blackstone and Ineos, Chrysaor and EIG declined to comment.

Siccar Point, owned by the Blue Water Energy buyout firm and Blackstone, made its first acquisition in the U.K. North Sea in August, buying an 8.9 percent interest in the Greater Mariner Area off Shetland from JX Nippon Exploration & Production U.K. Ltd.

Closely held Ineos, which runs Scotland’s only oil refinery at Grangemouth, has been active in the North Sea, agreeing to buy natural gas fields from a subsidiary of Russian billionaire Mikhail Fridman’s LetterOne Holdings SA last year.

Recommended for you

More from Energy Voice

Latest Posts