Royal Dutch Shell sells stake in Gulf of Mexico field for $965 million

  • Bizline

Apr 13, 2019-

The Hague: Royal Dutch Shell on Thursday agreed to sell its 22.45 percent stake in the Caesar Tonga field in the Gulf of Mexico for $965 million in cash to a subsidiary of Israeli energy conglomerate Delek Group. Located in the Gulf of Mexico, 300 km south of Louisiana, the field’s current production rate is 71,000 barrels per day of oil equivalent, with 90 percent of the output being oil. The Caesar Tonga field has 30 more years of life and assuming no change in the rate of production, Delek’s interest reflects 78 million barrels of oil equivalent reserves, Delek, Israel’s government-owned gas retailer, said. As part of the deal, Delek will sign a long-term agreement with a Shell affiliate to purchase oil produced from the field for 30 years at either market prices or prices matched to third-party offers. Delek Chief Executive Asaf Bartfeld said the deal, along with exploration in the North Sea and the Gulf of Mexico, would boost its position in the international energy market. Shell said the deal was likely to close by the end of the third quarter and the latest stake sale would contribute to its ongoing divestment programme. (REUTERS)

Published: 13-04-2019 10:20

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