Royal Dutch Shell plc, through its affiliate A/S Norske Shell, has reached an agreement with Okea AS to sell its entire 44.56 percent interest in Draugen and 12.00 percent interest in Gjoa in Norway for $556 million (NOK 4,520 million).
The transaction is expected to complete in Q4 2018. The transaction’s expected effective date is 1 January 2018. Upon completion, Okea will become the new operator of Draugen.
The decommissioning costs associated with the assets are currently estimated to be $120 million after-tax (NOK 1,000 million); Shell will retain 80 percent of this liability up to an agreed cap and Okea will assume the remaining liability.
The Shell share of the assets’ production amounted to approximately 25 kboe/d in 2017, representing about 14 percent of Shell’s Norwegian production in 2017.
On completion, Draugen staff onshore and offshore are expected to transfer to Okea with full continuity of service.
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