Ireland: Shell Exits Irish Upstream Sector Shell Completes Divestment of Gas Venture for up to 1.30 Billion Dollars
Shell, through its affiliate Shell Overseas Holdings Limited, has completed the sale of its shares in Shell E&P Ireland Limited (Sepil) for up to $ 1.30 billion to Nephin Energy Holdings Limited, a wholly-owned subsidiary of Canada Pension Plan Investment Board (CPPIB).
London/UK — Sepil holds a 45 % interest in the Corrib gas venture. The divestment completion follows the receipt of all necessary partner and regulatory consents.
The transaction includes an initial consideration of $ 958 million, interest of $ 54 million, and additional payments of up to $ 285 million between 2018-2025, subject to gas price and production. Completion of the deal represents the company’s exit from the upstream sector in Ireland. The group retains a presence in Ireland through its aviation joint venture, Shell and Topaz Aviation Ireland Limited. Shell Energy Europe Limited (Seel) has signed an offtake agreement to purchase Corrib gas following completion. The sale is to contribute to the company’s $ 30 billion divestment target for 2016-2018.