The fields to be sold are Auk, Fulmar and the Dunlin cluster and include acreage, production licenses and infrastructure on Blocks 30/16b, 30/11b, and 30/11b-f. The assets are located off the North East coast of the UK.
The trio of oil-producing sites currently provides 2% of Shell’s UK oil and gas production, pumping 14,064 barrels of oil per day as of January.
The move to divest assets in the North Sea comes at a time when production from the area has slowed due to higher operating costs and decreasing yields, resulting in the scaling back of involvement from the energy sector. The decision to sell is also in line with current Shell company strategy to recoup cash into the business in the wake of a difficult financial period last year.
Commenting on the strategic development, Kieron McFadyen, technical director for Shell Exploration & Production in Europe, said: Active management of our asset portfolio is a key part of Shell’s strategy in the North Sea. These assets could create opportunities for other companies to fulfill their growth ambitions in the industry while maintaining hydrocarbon production and employment for the UK.
