Shell confirms plans to sell Draugen and Gjøa shares to OKEA AS

By Sophie Chapman
The Royal Dutch Shell subsidiary, A/S Norske Shell, has announced that OKEA AS will be acquiring its 44.56% interest in Dra...

The Royal Dutch Shell subsidiary, A/S Norske Shell, has announced that OKEA AS will be acquiring its 44.56% interest in Draugen and its 12% interest in Gjøa.

The deal will see Norwegian oil firm purchase the shares for NOK4.52bn (US$556mn) once approved.

It is anticipated that the deal will be closed by the final quarter of the year, with the effective date expected to be 1 January 2018.

“This deal is part of Shell’s global, value-driven $30bn divestment programme and is consistent with our strategy to high-grade and simplify our portfolio”, said Andy Brown, Shell’s Upstream Director.

“Shell has a long and proud history in Norway. We continue to have strategic, long-term positions in Troll and Ormen Lange and are actively seeking new growth opportunities.”

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The decommissioning costs of the acquisition will likely reach NOK1bn (US$120mn) after tax.

“We are pleased to have found a buyer with an experienced leadership team and with a business strategy that aligns very well with the opportunities offered by Draugen and Gjøa” said Rich Denny, Managing Director of A/S Norske Shell.

“We are happy that OKEA’s ambition is to uphold and strengthen Draugen’s footprint in mid-Norway.”

“They will also be welcoming transferring staff in Kristiansund and Stavanger in order to leverage their substantial experience and competence for the safe and efficient operation of Draugen in the future.”

“This deal is a good strategic move for both companies. Draugen has been a defining asset for Shell in Norway, and we are confident it will prove to be similarly important to OKEA as a springboard in further developing their operating capabilities on the Norwegian Continental Shelf.”

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