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Image courtesy of Royal Dutch Shell.

Royal Dutch Shell said on Tuesday that it sold assets in the UK North Sea and Thailand for a combined $4.8 billion.

The company sold a package of UK North Sea assets to UK-based Chrysaor for a total of up to $3.8 billion, including an initial consideration of $3 billion.

The deal calls for a payment of up to $600 million between 2018 and 2021 subject to commodity price, with potential further payments of up to $180 million for future discoveries.

The package of assets includes Shell’s interests in Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine.

The deal also includes a 10 percent stake in Schiehallion.

Based on the initial consideration received, Shell said it expects to record an accounting gain on the sale against the values of both the Shell and former BG assets included in the package.

The decommissioning costs associated with the package are currently expected to be $3.9 billion, with Shell retaining a fixed liability of $1 billion.

Chrysaor will assume the remaining liability.

The transaction has an effective date of July 1, 2016.

The deal is subject to partner and regulatory approvals and is expected to be completed  in the second half of 2017.

Shell’s share of production from the package was about 115,000 barrels of oil equivalent per day in 2016.

Shell said that, following the completion of the deal, it will retain a “significant, more focused and strengthened presence in the UK North Sea, with production from the Schiehallion redevelopment and Clair Ridge project expected to come onstream.”

On completion of the deal, around 400 staff are expected to transfer to Chrysaor, subject to a detailed scoping exercise and staff consultation, on their existing terms and conditions of employment.

Shell also reached an agreement with KUFPEC Thailand Holdings Pte Limited on Tuesday for the sale of subsidiary companies Shell Integrated Gas Thailand Pte Limited and Thai Energy Co Limited.

The sale of the two subsidiaries is worth $900 million, Shell said.

KUFPEC Thailand Holdings is a subsidiary of Kuwait Foreign Petroleum Exploration Company (KUFPEC).

Shell Integrated Gas Thailand Pte Limited and Thai Energy Co Limited hold a 22.222 percent equity stake in the Bongkot field.

The subsidiaries also hold adjoining acreage in offshore Thailand consisting of blocks 15, 16 and 17 and block G12/48.

Shell’s partners in the Bongko asset are PTTEP, the operator of the field with a 44.445 percent equity stake.

France’s Total holds a 33.333 percent equity stake in Bongko.

“This transaction shows the clear momentum behind Shell’s global, value-driven $30 billion divestment programme, and is consistent with the company’s strategy to high-grade and simplify its portfolio following the acquisition of BG,” Shell said.

The KUFPEC transaction is expected to be completed in the first quarter of 2017.