Royal Dutch Shell (LON:RDSA) is looking to sell its stake in an offshore oil and gas joint venture in what would mark the company’s exit from Denmark, according to various banking sources.
Early reports suggest that the energy giant’s 36.8 per cent stake in the Danish Underground Consortium (DUC) is valued up to $1billion.
And sources say the Bank of America Merrill Lynch (BAML) is running the sale process.
Fellow stakeholders in the DUC include operator A.P. Moller-Maersk MAERSKb.CO, which has 31.2 percent, Chevron CVX.N which holds 12 percent, and Danish state-run Nordsøfonden which has a 20 percent stake.
Shell declined to comment on the rumours of a possible sale. BAML was not available for immediate comment.
DUC accounts for by far the majority of the Danish oil and gas produced and is the owner of the key points of the infrastructure of all activity in the Danish sector of the North Sea.
The consortium, which started production in 1972, currently operates 16 fields, In 2014 it produced 51 million barrels of oil, roughly 140,000 barrels per day, and 4 billion cubic metres of gas, according to Maersk’s website.
Shell said last week it was close to selling assets totalling $5 billion to cut debt following its $54 billion acquisition of BG Group a year ago.
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