Shell U.K. Limited (“Shell UK”), a subsidiary of Shell plc, and Esso Exploration and Production UK Limited, a subsidiary of ExxonMobil Corporation (“ExxonMobil”), have reached an agreement to sell their offshore natural gas assets interests in the U.K. Southern North Sea to RockRose Energy Limited, a subsidiary of Viaro Energy. These assets are currently operated by Shell through Nederlandse Aardolie Maatschappij (NAM), a joint venture between Shell and ExxonMobil.
Shell interests in the sale includes 11 gas fields and one exploration prospect in the U.K. Southern North Sea, as well as the onshore Bacton Terminal. Headquartered in London, Viaro Energy is an independent British producer which already has a working interest in over 65 fields in the U.K. and Netherlands North Sea.
The transaction follows Shell UK’s review of its portfolio in the U.K. Southern North Sea in 2021 where it aimed to focus on areas where Shell has competitive advantages to build a resilient, streamlined Upstream portfolio and a strong integrated value chain.
As a result, Shell UK’s main interests are now in the Central and Northern areas of the North Sea, where it retains a significant presence. Last year the Pierce field started producing gas after a major upgrade, while the newly built Penguins floating production, storage and offloading vessel is now at the field in preparation for start-up in due course, and for production to extend beyond 2035. Given the importance of gas to the U.K.’s energy security, Shell has also taken investment decisions on the Jackdaw and Victory gas fields, to sustain domestic gas production.
The transaction is subject to regulatory approvals and expected to complete in 2025.
