Dutch TTF prices face upward…
Chevron, along with most notably…
Shell is looking to sell its interest in two operating oil and gas projects in the U.S. Gulf of Mexico, which the supermajor hopes could fetch a total of $1.5 billion, Reuters reported exclusively, quoting sources familiar with the plans.
Shell, a major operator in the Gulf of Mexico, is looking to sell stakes in more mature developments—its Auger hub and the minority non-operational stake in the Conger field—to focus on newer projects, according to Reuters’ sources. Auger is one of Shell’s production platforms in the Gulf of Mexico, while Conger is operated by Hess Corporation and Shell holds 37.5 percent in the field.
The two fields have a combined production of about 50,000 barrels per day (bpd), per Reuters estimates.
The Gulf of Mexico is still a core area of operations for Shell, which approved an investment in developing the deep-water Whale discovery last year. The Whale development is scheduled to begin production in 2024 and is expected to reach peak production of approximately 100,000 barrels of oil equivalent per day (boe/d), Shell said. Whale will be Shell’s 12th deep-water host in the Gulf of Mexico.
Last month, Shell bought from Norway’s Equinor a 51-percent stake in the North Platte deepwater development project in the Gulf of Mexico. Equinor will retain 49 percent interest in the project, and Shell will become the new operator of the field located in the Garden Banks area. Equinor and Shell have agreed to rename the North Platte development to the Sparta development. Earlier this year, French major TotalEnergies withdrew from the project, releasing all its equity to Equinor.
Shell is not the only company looking to sell assets in the Gulf these days.
ConocoPhillips is considering a sale of its minority stake in the Shell-operated Ursa platform in the Gulf of Mexico, which—if done—would mark the exit of ConocoPhillips from U.S. Gulf offshore operations, sources with knowledge of the deliberations told Reuters this week.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.