Shell and Hess Agree Strategic Asset Swap

21 December 2009 (Last Updated December 21st, 2009 18:30)

Shell has agreed to swap Norwegian offshore assets for Hess Corporation's entire upstream portfolio in Gabon and its stake in the Clair field, which lies west of the Shetland Islands in the UK. The acquisition will enable Shell to strengthen its exploration and production portfolio in W

Shell has agreed to swap Norwegian offshore assets for Hess Corporation's entire upstream portfolio in Gabon and its stake in the Clair field, which lies west of the Shetland Islands in the UK.

The acquisition will enable Shell to strengthen its exploration and production portfolio in West Africa and the North Sea. In exchange, Hess agreed to acquire Shell's stake in the Norway-based Valhall and Hod offshore fields.

The deal, which is a strategic trade, does not involve any cash and depends on government approval and other requisite consents.

Shell's stake in the Gabon production licenses will be raised to 60% from 20% in Atora, to 94.3% from 44.3% in Toucan and to 52.5% from 42.5% in Rabi-Kounga.

In addition, its interest in the UK-based Clair field will increase to 28% from 18.7%.

In turn, Hess' interest in the Valhall and Hod offshore fields will increase to 56.2% and 50%, respectively.