Shell’s CEO Ben van Beurden, confirms North Sea asset sales, to journalists during an LNG conference, in Western Australia today.
During the LNG 18 conference in Perth, journalists asked Shell CEO Ben van Beurden on possible asset sales due to the recent $70 billion BG Group merger.
Shell’s van Beurden Confirms North Sea Sales
When asked on the sale of the supermajors North Sea assets, Ben van Beurden said: “North Sea is of course a much enlarged portfolio at the moment. We have bought a lot of BG resources in, complementing our existing resources.”
“The BG resources are of a slightly more recent vintage so they have more running room. They are probably therefore higher quality, higher value.”
van Beurden continued: “I think the North Sea for us will be an area where we’ll have to take a look, as we have to do with our entire conventional upstream, now that we have a much enlarged portfolio, to just see where are the real concentrated sources of value and how do we need to rationalise or high grade that portfolio to one that has higher returns, more running room and more free cash flow, and that’s exactly what we will be doing over the next few years.”
Responding, the reporter asked: “So some of those assets will be sold?”
Mr van Beurden concluded: “Yes, as they will be in other parts of our portfolio.”
Speculation has been growing over recent weeks regarding Shell’s asset sales. Covering the matter back in March, Offshore Post highlighted the newly formed Neptune Oil and Gas, headed up by former Centrica CEO Sam Laidlaw, as one company that has made its intentions to buy Shell’s North Sea assets public.