Shell Sells some Norwegian Assets

A/S Norske Shell announced that the company has entered into an agreement with E.ON Ruhrgas Norge AS to sell its 28% equity interests in the undeveloped Skarv and Idun fields for US$ 893 million. The agreement covers the licenses PL-159, PL-212, PL-212B and PL-262 in the Norwegian Sea.

David Loughman, Managing Director A/S Norske Shell, said: "We remain fully committed to Norway and continue to consider this to be a key area of growth within our European business. We are currently making major investments on the Norwegian Continental Shelf. The Ormen Lange development, where Shell assumes operatorship in November 2007, is very important in our growth strategy. We are currently investing in increased output from the Shell operated Draugen asset, the development of Gjøa and further development of the Statfjord, Troll, Kvitebjørn and Valhall assets. In addition we continue a very active exploration drilling program in the deep-water areas of the Norwegian Sea."

"The divestment of Skarv and Idun is part of the active management of Shell's portfolio-based strategy. We are committed to focussing on assets where we can best use our people, capital and technologies for competitive long-term returns and on a global basis. As any healthy business should, we continually evaluate our portfolio to ensure that the fields, which we own, are those where we can add most value."

The sale is subject to the relevant regulatory approval and is expected to be completed by end 2007.

The Skarv and Idun development will be located in the Norwegian Sea, 200 km west of Sandnessjøen, in water depths of between 350 and 450 meters. The fields are located in Production Licenses PL212, PL262, PL159. It consists of the Skarv gas and oil field and the Idun gas field. Both fields contain hydrocarbons at three reservoir levels and the total recoverable resource basis is estimated to 16.8 MSm3 of oil and condensate and 48.3 GSm3 of rich gas.