Shell (LON:SHEL) has reportedly begun soliciting interest from potential buyers for stakes in two key Gulf of Mexico assets, the sale of which could generate up to $1.5 billion.
Shell is weighing up the sale of the Auger hub and its 37.5% stake in the Conger field, Reuters reported on Wednesday, citing people familiar with the matter.
Shell has reportedly hired having hired an investment bank to run an auction process for the assets, they said.
Conger is operated by Hess (37.5%) though Shell has a matching 37.5% stake, with the remaining 25% held by Occidental Petroleum.
Auger, meanwhile, was the world’s first tension leg platform when it was installed in 1994.
The supermajor is aiming for a valuation of around $1.5 billion from the sale of the two assets, which have a combined output of around 50,000 barrels per day, Reuters reported.
The sources cautioned there was no guarantee Shell would secure a deal, and spoke on condition of anonymity to discuss private information.
Divestment of some of its older assets would free up resources to focus on newer developments, the sources said, particularly the Whale development in the Gulf which is expected to start production in around two years, the sources said.
Holding nearly 500 million barrels of oil equivalent, the Whale development is operated by Shell (60%) alongside partner Chevron (40%), and is expected to reach peak production of approximately 100,000 (boepd) after it comes online in 2024.
It follows reports earlier this year that the supermajor is looking to offload stakes in several North Sea projects too, including its 50% share in a tranche of fields at the Clipper hub, as well as the Leman Alpha complex.
The sources said that the sale of these assets could garner up to $1 billion (£740m) in total.
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