Shell Offshore Inc., a subsidiary of Royal Dutch Shell plc, has agreed to sell its 22.45 per cent non-operated interest in the Caesar-Tonga asset in the US Gulf of Mexico to Delek CT Investment LLC, a subsidiary of Delek Group Ltd. The value of this deal is $965 million in cash.
Caesar-Tonga is located approximately 190 miles (300 kilometers) south-southwest from New Orleans, Louisiana in the Green Canyon area of the US Gulf of Mexico.
The Sales and Purchase Agreement is subject to certain conditions, including regulatory approvals. The transaction is likely to close by the end of the third quarter 2019, with an effective date of 1 January 2019.
Andy Brown, Upstream Director, Royal Dutch Shell said the transaction represents the company’s focus to grow its deep-water business as part of the Upstream strategy to pursue competitive projects that deliver value from the 2020s.
“The sale will contribute to Shell’s ongoing divestment programme and allow us to direct resources to the areas where we see the most value in the longer term.”
The Caesar-Tonga field is operated by Anadarko Petroleum Corporation, holder of the 33.75 per cent interest. The remaining interest is distributed between Equinor (23.55%), Shell (22.45%) and Chevron (20.25%).
Current total average production at Caesar-Tonga is over 70,000 boe/d total gross.