Shell’s recent sale of onshore assets in Egypt helps bring the European major closer to its $4 billion divestment target for the year, but it also supports the buyer. Working to achieve a net zero target by 2050, UK-based Cairn Energy acquired Shell’s stake in producing gas assets in the Western Desert, while offloading its oil-heavy assets in the UK. The move will transform Cairn Energy’s portfolio and better position the company for the energy transition.
This divestment brings Shell’s upstream proceeds from announced deals in just the first 10 weeks of the year to nearly $2 billion – half the total target for 2021. Shell sold in January its stake in onshore block OML 17 in Nigeria for $533 million to local player TNOG. A month later, the Anglo-Dutch giant sold its Kaybob Duvernay assets in Canada to Crescent Point Energy for $708 million. This month, Shell divested its onshore assets in Egypt’s Western Desert for $646 million, plus contingent payments of up to $280 million. This latest deal was agreed with UK-based Cairn Energy and Egypt’s largest independent E&P company Cheiron Petroleum Corporation.
Shell selling its onshore gas assets in Egypt is in line with plans to prioritize nine core areas within its upstream portfolio
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