Royal Dutch Shell, through its affiliate Shell Overseas, has completed the sale of its shares in Shell E&P Ireland (SEPIL), which owns 45% stake in the Corrib gas venture, for up to $1.30bn (€1.14bn), to Nephin Energy (NEHL), a subsidiary of Canada Pension Plan Investment Board (CPPIB).
Image: Shell’s headquarters in The Netherlands. Photo: courtesy of P.L. van Till at nl.wikipedia.
Completion follows receipt of all necessary partner and regulatory consents and the transaction’s effective date is 1 January 2017.
The transaction includes an initial consideration of $958 million (€840 million), interest of $54 million (€47 million), and additional payments of up to $285 million (€250 million) between 2018-2025, subject to gas price and production. Completion of the deal represents Shell’s exit from the upstream sector in Ireland.
The sale will contribute to Shell’s $30 billion divestment target for 2016-2018.
Shell Energy Europe Limited (SEEL) has signed an offtake agreement to purchase Corrib gas following completion.
Shell retains a presence in Ireland through its aviation joint venture, Shell and Topaz Aviation Ireland Limited.
Source: Company Press Release