Shell To Exit Upstream Ireland Business With $1.23 Billion Sale
Royal Dutch Shell Plc said it would sell its 45% stake in the Corrib gas venture to a unit of Canada Pension Plan Investment Board (CPPIB) for up to $1.23 billion, marking the oil company's exit from the upstream business in Ireland.
The deal includes an initial consideration of $947 million and additional payments of up to $285 million between 2018 and 2025, subject to gas price and production, Shell said July 12.
The Anglo-Dutch company is on track to sell assets of about $30 billion by 2018 to cut debt following its roughly $70 billion acquisition of BG Group.
Shell has also been working to mitigate climate change risks that have upset some investors.
The development of the Corrib gas field, discovered in 1996, has faced protests since 2005 by residents concerned that the laying of a high-pressure pipeline to bring gas onshore could pollute their water supply.
CPPIB, Canada's biggest public pension fund, and Vermilion Energy Inc. will become the new operator of the gas field off the northwest coast of Ireland.