Shell E&P Ireland has 45% interest in the Corrib gas venture.

Under the deal, Shell will secure an initial consideration of $947m, as well as additional payments of around $285m between 2018 and 2025 based on gas price and production.

Shell's share in the Corrib gas venture’s production accounts for up to 27,000 barrels of oil equivalent per day in 2016.

Shell Energy Europe (SEEL) has entered into an offtake agreement for around 40% of the Corrib gas venture’s production for up to three years following completion.

Subject to partner and regulatory consents, the deal is expected to complete in the second quarter of 2018. The completion of the transaction will mark Shell’s exit from the upstream business in Ireland. 

CPPIB will turn as the new Corrib Gas JV partner, while Vermilion will become the new operator of the Corrib gas venture.

Shell upstream director Andy Brown said: “This transaction is part of our strategy to reshape Shell and to deliver a world class investment case.

“It demonstrates the strong momentum behind our three-year $30 billion divestment programme. At the half-way point, we have now announced deals valued at more than $20 billion.”

Shell Ireland country chair Ronan Deasy said: “Shell is very proud to have led the development of the Corrib gas field. Since coming on-stream, the field and facilities have delivered exceptional performance.”

Shell will carry out operations in Ireland through its aviation joint venture, Shell and Topaz Aviation Ireland.