On 29th August, Shell announced that it had agreed to sell 100% of its interests in the Gulf of Mexico Green Canyon Blocks 114, 158, 202 and 248 (the Brutus/Glider assets), to EnVen Energy Corporation for USD425 million in cash. These assets do not appear to form part of Shell's core strategy in the region, with recent activity focusing on the Mars/Vito/Na Kika areas to the east.
The Brutus/Glider assets include the Brutus Tension Leg Platform, and the Glider subsea production system, as well as the pipelines used to evacuate production from the platform. The assets have a combined current production of 25mboepd, although the Brutus platform has capacity to produce 130mboepd.
Given investors' key concern is around the company's debt levels (Shell has over USD75 billion in net debt following the acquisition of BG), and negative free cash flow at current oil price levels, the divestment is welcome and is a step towards the USD30 billion divestment programme mentioned last year.
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| Source: Shell |
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