Shell Sells New Zealand Assets for $578 Million

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Royal Dutch Shell (NYSE:RDS-A) (Shell) (The Hague, Netherlands) continues to rid itself of oil and gas assets with the sale of New Zealand assets for $578 million to Austria's OMV AG (OTC:OMVKY) (Vienna, Austria).

It includes the Māui, Pohokura, and Tank Farm assets, and the sale of Shell's interest in (and operatorship of) the Great South Basin venture, which was subject to a separate agreement. The deal forms part of Shell's global drive to sell off $30 billion in assets in order to cut costs and streamline its business. Last October, Industrial Info reported that Shell had sold its Danish upstream oil and gas assets to Norwegian Energy (Noreco) for $1.9 billion. That sale will see Noreco take control of wholly owned subsidiary Shell Olie-og Gasudvinding Danmark B.V. (SOGU), subject to regulatory approval, which is expected to be completed in 2019. For additional information, see October 30, 2018, article - Shell Offloads Danish Assets in $1.9 Billion Deal.

"We are proud of having worked in New Zealand for more than 100 years and completion of the sale to OMV marks an important milestone in the company's history," said Zoe Yujnovich, Shell's vice president of Australia and New Zealand. Shell staff in New Zealand, past and present, have been key to building a successful New Zealand business. I wish our colleagues all the very best as OMV takes the business forward."

The sale is part of the company's plan "to simplify the upstream portfolio and re-shape the company into a world-class investment." OMV now takes control of joint venture interests in Pohokura (48%), the largest gas producing field in New Zealand, and Maui (83.75%) as well as related infrastructure for production, storage and transportation.

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