October 17, 2018 / 1:51 PM / a month ago

Shell sells its Danish upstream assets to Norwegian Energy for $1.9 bln

OSLO, Oct 17 (Reuters) - Royal Dutch Shell has agreed to sell its Danish upstream business to oil firm Norwegian Energy (Noreco) for $1.9 billion, as part of its wider divestment strategy, the company said on Wednesday.

The sale brings Shell to virtually complete a three-year $30 billon divestment plan it started in 2015 following the acquisition of BG Group. The sales included a number of major portfolios in the British North Sea, Gabon, Thailand and Canada.

It represents production of some 67,000 barrels of oil equivalents per day in 2017, and as part of the deal, Noreco will assume all of Shell’s existing commitments and obligations, including the Tyra field redevelopment, it added.

“Today’s announcement is consistent with Shell’s strategy to simplify its portfolio through a $30 billion divestment programme, and contributes to our goal of reshaping the company into a world class investment case,” Andy Brown, Shell’s upstream director said in a statement.

Oslo-listed Noreco saw its shares surge 90 percent after the deal was announced to 288.5 Norwegian crowns ($35.30). By 1338 GMT it traded 57 percent higher at 236 crowns.

$1 = 8.1722 Norwegian crowns Reporting by Nerijus Adomaitis in OSLO, additional reporting by Ron Bousso in LONDON, editing by Terje Solsvik and Louise Heavens

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