BP

Shell buys BP's stake North Sea field, scrapping previous deal

Credit: REUTERS/HAMAD I MOHAMMED

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LONDON, June 25 (Reuters) - Royal Dutch Shell RDSa.L said on Friday it had agreed to acquire BP's BP.L 27.5% stake in the Shearwater North Sea gas field, raising its stake in the field to 55.5%.

Shell, which operates the Shearwater hub, exercised its right of first refusal to the stake after BP agreed last month to sell its stake to Tailwind, a private oil producer backed by commodity trader Mercuria.

"This is part of a multi-year strategy, following a number of earlier growth projects, to strengthen Shearwater’s role as an important gas hub for UK energy supply," a Shell spokesperson said.

"The move reflects Shell's strategy of focusing our upstream activities on fewer, existing positions to generate material returns for shareholders and to fund the growth of our new low-carbon portfolio."

BP did not respond to a request for comment.

(Reporting by Ron Bousso, editing by Louise Heavens)

((ron.bousso@thomsonreuters.com; +44 (0) 2075422161; Reuters Messaging: ron.bousso.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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