Shell to sell stake in Caesar Tonga field offshore Mexico to Focus Oil

24 September 2018 (Last Updated July 31st, 2020 13:22)

Shell is reportedly engaged in discussions to divest its 22.5% working interest in the Caesar Tonga oilfield in the Gulf of Mexico to oil and gas exploration company Focus Oil.

Shell to sell stake in Caesar Tonga field offshore Mexico to Focus Oil
Offshore rig. Credit: wsquared photography.

Shell is reportedly engaged in discussions to divest its 22.5% working interest in the Caesar Tonga oilfield offshore Mexico to oil and gas exploration company Focus Oil.

The company is pursuing the sale as part of its $30bn asset divestment programme to pay for its $50bn takeover of BG Group in 2016, Bloomberg reported.

Citing unnamed sources, the news agency pegged the deal value at about $1.3bn. As of July this year, Shell was some $2.5bn away from realising its divestment target.

Anadarko Petroleum is the operator of the Caesar Tonga field. Other stakeholders in the field include Equinor and Chevron.

“Production at Caesar Tonga commenced in 2012, when Anadarko estimated that the field contained around 400 million barrels of oil equivalent in resources.”

The Caesar Tonga project comprises three separate discoveries in the southern Green Canyon portion of the gulf offshore Mexico, according to Bloomberg, which cited information from energy consultant Wood Mackenzie.

The three discoveries include Tonga, Caesar and the West Tonga, which were made between 2003 and 2007.

Production at Caesar Tonga commenced in 2012, when Anadarko estimated that the field contained around 400 million barrels of oil equivalent in resources.

In June this year, Shell’s affiliates Shell Integrated Gas Thailand and the Thai Energy Company closed the sale of their 22.22% interest in the Bongkot field and adjoining acreage offshore Thailand for a total consideration of $750m.

At the same time, the company also agreed to sell its entire 44.56% interest in Draugen and 12.00% interest in Gjøa in Norway for an aggregate amount of $556m.