Published: November 16, 2016 |

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Oil giant Shell is contemplating to sell part of its $3bn Norwegian business to reduce its debt that swelled after the acquisition of BG Group.

The company has roped in investment bank Rothschild to conduct a review of its Norwegian assets, The Sunday Times reported.

It holds majority stakes in several large fields in the Norwegian North Sea and owns smaller stakes in many other projects in the North Sea.

Shell is under pressure from its investors to trim its massive debt that rose to $86bn at the end of September compared to $52bn at the end of last year.

In February, Shell completed the acquisition of its rival BG Group for approximately $53bn to boost its operations particularly in Brazil.

Persistent slump in crude oil prices has also forced the company to consider divestment of its assets globally.

In October, Shell Canada Energy signed an agreement to divest approximately 206,000 net acres of non-core oil and gas assets in Western Canada to Tourmaline Oil for $1bn.

Its affiliate Shell Offshore signed an agreement in August to divest 100 percent stake in Green Canyon Blocks 114, 158, 202 and 248 located in the Gulf of Mexico to US-based firm EnVen Energy Ventures for $425m.

The sale was part of the company’s efforts to divest $30bn worth of assets over the next three years to reduce its debt.

The company has 12 fixed structure platforms producing oil and gas in the Gulf of Mexico. It also operates six major deep-water and ultra deep-water floating platforms.

Source: (November 15, 2016) Energy Business Review

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