Royal Dutch Shell has reached an agreement to sell its shares in Shell entities in New Zealand to OMV for US$578 million
This follows a two-year strategic review of Shell’s interests in New Zealand and the sale of Shell’s interest in Kapuni in 2017.
It is consistent with the Shell Group strategy of divesting US$30 billion of assets by end 2018, and is in line with Shell’s drive to simplify the upstream portfolio and re-shape the company into a world class investment.
The agreement includes Māui, Pohokura and the Tank Farms.
Shell has also entered into an agreement with OMV to sell its interest in (and operatorship of) the Great South Basin venture, which includes a drilling commitment currently estimated to be US$50 million.
The Sales and Purchase Agreement is subject to certain conditions, which include normal regulatory approvals, and is likely to be complete by Q4 2018.
As part of the deal, the employees of Shell Taranaki Limited and Shell New Zealand will become part of OMV New Zealand, upon completion of the deal.