Shell Sells Upstream Interests in Ireland for $1.23 Billion

Royal Dutch Shell plc (Shell) said that it has agreed to sell its shares in Shell E&P Ireland Limited, that holds 45 percent interest in the Corrib gas venture, to CPP Investment Board Europe SARL, a wholly-owned subsidiary of Canada Pension Plan Investment Board (CPPIB).

The total transaction is valued up to $1.23 billion. This transaction represents Shell’s exit from the upstream business in Ireland and is expected to complete in Q2, 2018.

The Shell share of the Corrib gas venture’s production represented approximately 27,000 barrels of oil equivalent/day in 2016. CPPIB will be the new Corrib Gas JV partner and Vermilion will become the new operator of the Corrib Gas Venture.

“This transaction is part of our strategy to reshape Shell and to deliver a world-class investment case. It demonstrates the strong momentum behind our three-year $30 billion divestment programme. At the half-way point, we have now announced deals valued at more than $20 billion,” said Andy Brown, Shell’s upstream director.

“Shell is very proud to have led the development of the Corrib gas field. Since coming on-stream, the field and facilities have delivered exceptional performance. I would like to pay tribute to all those who have contributed to the development of this important energy project,” added Ronan Deasy, Shell’s country chair in Ireland.