Gas Processing is Produced by Gulf Publishing Company

Your source for technology information for the gas processing industry

Shell to sell stake in Corrib gas field in Ireland for $1.23 B

(Reuters) — Royal Dutch Shell is to sell its 45% stake in the Corrib gas venture to a subsidiary of Canada Pension Plan Investment Board for up to $1.23 B, marking the oil company's exit from the upstream business in Ireland.

The deal includes an initial consideration of $947 MM and additional payments of up to $285 MM between 2018–2025, subject to gas price and production, Shell said in a statement on Wednesday.

The transaction will result in an impairment charge of around $350m, which will be taken in Q2 2017, Shell said.

CPPIB, Canada's biggest public pension fund, and Canada's Vermilion Energy Inc will become the new operator of the Corrib Gas Venture situated off then north-west coast of Ireland.

The development of the Corrib field, discovered in 1996, has faced protests, including by residents opposed to a pipeline to bring the gas onshore.

In late 2015, gas began to flow from the field, which Shell has estimated could meet up to 60% of Ireland’s gas needs.

Statoil, which owns a 36.5% stake in the Corrib gas field, was not immediately available to comment.

The total sale price of $1.23 B also includes a payment of up to $171.83 MM contingent on annual average (NBP) prices being above 2.03 euro cents/kWh between 2018 to 2022, Shell said.

The transaction, which is subject to partner and regulatory approval, is expected to complete in the second quarter of 2018, the company said.

Shares in Shell were up 1.7% at 2079 pence at 1031 GMT.

Reporting by Rahul B and Yashaswini Swamynathan in Bengaluru and Gwlady Fouche in Norway.; Editing by Susan Fenton and Jane Merriman

Copyright © 2018. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo


Business Trends
In the business of hydrocarbon production, accurate accounting of produced fluids and gases is critical from a process control, management and fiscal perspective.
Editorial Comment
-Adrienne Blume
The US East Coast will send out its first LNG exports in early 2018 as Dominion Energy’s Cove Point LNG export facility in Lusby, Maryland becomes operational.

The New LNG Imperative

Register Now

The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.

November 29, 2017 10am CST

View on Demand


Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2018 Gulf Publishing Company.