The Hague-based LNG giant Shell, agreed to sell its shares in Shell entities in New Zealand, to OMV for $578 million.
This follows a two-year strategic review of Shell’s interests in New Zealand and the sale of Shell’s interest in Kapuni in 2017.
Shell noted the sale is consistent with its strategy of divesting $30 billion of assets by end 2018, and is in line with the company’s aim to simplify the upstream portfolio.
Shell has also entered into an agreement with OMV to sell its interest in and operatorship of the Great South Basin venture, which includes a drilling commitment currently estimated to be $50 million.
The sales and purchase agreement is subject to certain conditions which include normal regulatory approvals and is likely to be complete by the fourth quarter this year.