On Thursday, Shell Offshore Inc. signed the agreement of sale of its non-operated share in the Caesar-Tonga project. The company has profited approximately $1 billion from the said sale.
Shell Offshore Inc. is a subsidiary company of the Royal Dutch Shell. It owns 22.45 percent share in the said oil development situated in the Gulf of Mexico. For a sum of $965 million, Shell will renounce its stake to the Delek CT Investment LLC, a subsidiary corporation of the Delek Group Ltd. The said business deal is effective starting January 1, 2019. It is estimated that the deal closes off before the third quarter of 2019 ends.
Royal Dutch Shell’s Upstream director, Andy Brown, said that the company is aiming its available wherewithal to expanses with greater long-term values. Shell is in pursuit of competitive plans in 2020 and in the years to come. The divestment program to non-core assets throughout 2020 is part of the said developmental plans. Shell believes that the trade surely contributes to the company’s divestment program.
Shell is intending to divest $10 billion to finance business growth and share buybacks. Just last year, Shell made a huge divestment of $30 billion with its purchase of the BG Group of United Kingdom.
The Caesar-Tonga project is an oil-field development project. It situates in about 300 kilometers southwest from New Orleans, Louisiana. It is located at 1,500-meter water depth in blocks 683, 726, 727 and 770 in the Green Canyon area of the Gulf of Mexico. The high quality of oil production in the project started early in 2012.
Anadarko Petroleum Corporation, a Woodlands-based company, manages the major operation of the project. Shell Offshore Inc. owns 22.45 percent share in the said Mexican development. It is the third-largest shareholder next to Anadarko Petroleum Corporation (33.75 percent) and Equinor (23.55 percent). Despite the business sale made, Shell still holds as a top investor in the Gulf of Mexico.