Shell has agreed to sell its interest in 13 onshore concessions and in Bad El-Din Petroleum for $926 million as it continues to divest non-core items to reduce its debt. Specifically, U.K. based Cairn along with Egyptian based Cheiron Petroleum will be buying Shells assets for $646 million plus additional payments of $280 million by 2024. The extra $280 million is dependent on additional oil exploration discoveries and the price of oil.
In a statement, Shell said, this “will enable Shell to concentrate on its offshore exploration and integrated value chain in Egypt, including seven new blocks in the Nile Delta, West Mediterranean and Red Sea.”
Increasingly, Shell has been reducing total debt and focusing on both renewable energy and further developing existing offshore and onshore oil fields and bolstering is LNG operations. The deal is expected to close in the4 second half of 2021.
Shell is one of the largest oil producers in the world with vast oilfields in the United States, Gulf of Mexico, Malaysia, Brazil and the Middle East. It has also been devoting a significant amount of revenue to renewable energy and is one of the largest wind turbine operators in the United States.