Global energy company Shell has completed the sale of its shares in Shell E&P Ireland Limited (SEPIL), which holds a 45% interest in the Corrib gas venture (Ireland) for a total consideration of €1.14bn (US$1.3bn) to a wholly-owned subsidiary of Canada Pension Plan Investment Board (CPPIB). The completion of the agreement signed in July 2017 represents Shell’s exit from the upstream sector in Ireland.
Shell E&P Ireland was the operator of the Corrib Gas joint venture asset, which started to produce hydrocarbons at the end of 2015 and reached an output of approximately 27 kboe/d in 2016. Vermillion Energy will now become the field new operator with a 18.5% stake (an additional 1.5% will be transferred from CPPIB). Statoil holds the remaining 36.5% interest in the field.
The sale agreement fits into Shell's US$30bn worldwide divestment programme, of which US$20bn of non-core assets have already been sold. This strategy has been chosen in order to reduce the impact of the BG Group takeover in 2016.