Anglo-Dutch oil and gas company Shell has agreed to sell its upstream oil and gas assets in Denmark to Noreco (Norwegian Energy Company) for a total consideration of US$1.9bn (€1.65bn).
The assets comprise Shell's wholly-owned subsidiary Shell Olie-og Gasudvinding Danmark (SOGU), which holds a 36.8% non-operating stake in the Danish Underground Consortium (DUC) and produced around 67,000 boe/d as of 2017. The transaction also includes a 100% interest in Shell Olie-Og Gasudvinding Denmark Pipelines (SOGUP) held by SOGU; SOGUP owns a proportionate interest in the Tyra West – F3 gas pipeline. As per the sale, Noreco will assume all of Shell's obligations and commitments, including the Tyra redevelopment and the decommissioning costs associated with the assets. The transaction is subject to regulatory approval and expected to be completed in 2019.
Shell is not the only company to divest its Danish oil and gas assets. In September 2018, Chevron sold its fully-owned subsidiary Chevron Denmark to Total, which thus raised its share in the Danish Underground Consortium (DUC) to 42.2%.