Shell completes divestment of upstream interests in Ireland

Source: press release, 30 November 2018

photo: Shell plc
photo: Shell plc

Royal Dutch Shell plc, through its affiliate Shell Overseas Holdings Limited, has completed the sale of its shares in Shell E&P Ireland Limited (SEPIL), which holds a 45% interest in the Corrib gas venture, for up to USD 1.30 billion (EUR 1.14 billion), to Nephin Energy Holdings Limited (NEHL), a wholly owned subsidiary of Canada Pension Plan Investment Board (CPPIB). Completion follows receipt of all necessary partner and regulatory consents and the transaction’s effective date is 1 January 2017.

The transaction includes an initial consideration of USD 958 million (EUR 840 million), interest of USD 54 million (EUR 47 million), and additional payments of up to USD 285 million (EUR 250 million) between 2018-2025, subject to gas price and production. Completion of the deal represents Shell’s exit from the upstream sector in Ireland.

The sale will contribute to Shell’s USD 30 billion divestment target for 2016-2018.

Shell Energy Europe Limited (SEEL) has signed an offtake agreement to purchase Corrib gas following completion.

Shell retains a presence in Ireland through its aviation joint venture, Shell and Topaz Aviation Ireland Limited.