Shell sells its 9.02% stake in the Polarled gas pipeline

Shell sells its 9.02% stake in the Polarled gas pipeline

Shell is selling its stake in the Polarled offshore pipeline in Norway, as well as a part of its stake in the Nyhamna gas plant to CapeOmega reports Offshore Energy Today

According to a statement by Shell, CapeOmega AS will buy Shell’s 9.02% stake in the Polarled gas pipeline and 3% of the 15.03% stake in the gas plant Nyhamna.

CapeOmega is owned by HitecVision, a European acquisition fund focused on offshore upstream oil and gas industry. The transaction is expected to be completed by 2017, subject to approval by the Ministry of Petroleum and Energy and the Ministry of Finance of Norway.

Polarled is a new gas pipeline from Statoil’s Aasta Hansteen field in the Norwegian Sea to the Shell-operated Nyhamna gas processing facility in Møre Og Romsdal county. The pipeline is a new transport solution for the Norwegian Sea gas field and a common infrastructure for handling increased production volumes.

The joint venture company Polarled JV, consisting of Gassco, Statoil, Petoro, OMV, Shell (to be replaced by CapeOmega), Total, RWE Dea, ConocoPhillips, Edison, Maersk Oil, Engie, and Wintershall, owns the pipeline which is 481 kilometers long and 36 inches in diameter.

Shell will still be linked to Nyhamna through a significant ownership stake and still be in charge of the operation of the plant through the role of technical service provider to Gassco, the company said.

“Shell participated in the funding of the Polarled pipeline and expansion of Nyhamna in order to help further develop gas production on the Norwegian continental shelf. The sale has no impact on Shell’s business or strategic aspirations in Norway, “said Rich Denny, Shell’s CEO in Norway.

The agreement is in accordance with Shell’s strategy to concentrate the upstream portfolio, where the company can provide the most value to shareholders and partners, Shell said.

Shell and CapeOmega have agreed not to provide information on financial aspects of the transaction.

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