Shell to offload LPG, North Sea assets to fund capex
02 Mar 2010
Oil and gas major, Royal Dutch Shell Plc. is selling certain assets including its European liquid petroleum gas (LPG) business and fields in the North Sea to help finance its $28 billion capital expenditure programme this year, the Financial Times reported on Monday.
The oil and gas giant said it is expected to raise $2 billion to $3 billion from selling its non-core assets, particularly downstream assets such as refining and marketing operations in mature markets such as Europe.
It is also believed to be selling some mature oil and gas fields in the North Sea and Nigeria.
Shell has invited indicative bids, which are expected to go up to approximately €1 billion ($1.35 billion) for its French LPG business, which specialises in bottled gas to rural homes.
According to some reports, private equity vehicles including Axa, Bain Capital, PAI, CVC Capital Partners and the Carlyle Group are thought to be interested in the business, which saw earnings before interest, tax, depreciation and amortisation (EBITDA) of about $162 million last year.
Shell has also reportedly put up for sale North Sea fields connected to the Anasuria floating production, storage and offloading vessel off the coast of Aberdeen, and fields in the Southern gas basin.
