Shell has sold its non-operated interest (22.45%) in the Caesar-Tonga asset, U.S. Gulf of Mexico, to Equinor for $965 million. The transaction is subject to approval of the lease assignments by the regulator.
The transaction represents Shell’s focus on strategically positioning the deepwater business for growth and is consistent with its strategy to pursue competitive projects that deliver value in the 2020s and beyond. The sale contributes to Shell’s ongoing divestment program.
Shell has a leading deepwater portfolio with an exciting development funnel and strong exploration acreage in the U.S. Gulf of Mexico, Brazil, Nigeria and Malaysia heartlands, as well as in emerging offshore basins such as Mexico, Mauritania and the Western Black Sea. Shell currently is the largest leaseholder and one of the leading offshore producers of oil and natural gas in the U.S. Gulf of Mexico.
In April 2019, Shell announced it had signed an agreement to sell its interest to Delek CT Investment. Subsequently, Equinor exercised its right of first refusal under the joint venture operating agreement. The transaction has an effective date of January 1, 2019.
The field is operated by Anadarko Petroleum, holder of 33.75% interest. The remaining interest in the asset following the completion of the divestment is distributed between Equinor (46.0%), and Chevron (20.25%).