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Shell sells Philippine gas field for $460m

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Oil giant, Royal Dutch Shell (RDSa.L) has agreed to sell its stake in an offshore gas field in the Philippines for $460 million, Shell said in a statement on Thursday.

According to the international oil conglomerate, the decision is a part of its strategy to narrow its oil and gas operations.

Shell, by that deal, has sold its 45% stake in Service Contract 38 (SC38) to a subsidiary of the Udenna Group which already holds a 45% stake in the project.

The SC38 is a deep water licence which includes the producing Malampaya gas field,

The statement added that Shell’s base consideration for the sale is $380 million, with additional payments of up to $80 million between 2022 to 2024 contingent on asset performance and commodity prices.

The deal is targeted to complete by the end of 2021.

Wael Sawan, Shell’s head of oil and gas production, said the deal “is consistent with Shell’s efforts to shift our Upstream portfolio to one that is focused on nine core positions.”

Mark Longyen

NEWSVERGE, published by The Verge Communications is an online community of international news portal and social advocates dedicated to bringing you commentaries, features, news reports from a Nigerian-African perspective.A unique organization, founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favour.The Verge Communications is fully registered with the Corporate Affairs Commission of the Federal Republic of Nigeria as a corporate organization.

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