Nephin Acquires Shell’s Upstream Interests in Ireland for $1.3 Billion
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Royal Dutch Shell, through its affiliate Shell Overseas, has completed the sale of its shares in Shell E&P Ireland (SEPIL), which owns 45 percent stake in the Corrib gas venture, for up to $1.30bn (€1.14bn), to Nephin Energy (NEHL), a subsidiary of Canada Pension Plan Investment Board (CPPIB).
Completion follows receipt of all necessary partner and regulatory consents and the transaction’s effective date is January 1, 2017.
The transaction includes an initial consideration of $958 million (€840 million), interest of $54 million (€47 million), and additional payments of up to $285 million (€250 million) between 2018-2025, subject to gas price and production. Completion of the deal represents Shell’s exit from the upstream sector in Ireland.
The sale will contribute to Shell’s $30 billion divestment target for 2016-2018.
Shell Energy Europe Limited (SEEL) has signed an offtake agreement to purchase Corrib gas following completion.
Shell retains a presence in Ireland through its aviation joint venture, Shell and Topaz Aviation Ireland Limited.
Source: Compelo
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