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Update: Shell to Sell $3.8 Bln of UK North Sea Assets

(Updating with sale with sale of Thai gas field for $900 million)

Royal Dutch Shell (RDS.A, RDS.B, RDS-A, RDS-A, RDS/A, RDS/B) said Tuesday it has agreed to sell a package of U.K. North Sea assets to Chrysaor for up to $3.8 billion and a Thai gas field for $900 million.

The North Sea assets consist of the company's interest in Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine, and a 10% stake in Schiehallion. The assets represent production of about 115,000 barrels of oil per day in 2016.

Shell will retain a fixed liability of $1 billion for the $3.9 billion estimated decommissioning costs associated with the assets, while Chrysaor will assume the remaining liability.

Under the deal, the company will receive an initial consideration for the assets of $3 billion, up to $600 million between 2018 and 2021, and potential further payments of up to $180 million for future discoveries.

The deal is expected to close in H2 2017, subject to partner and regulatory approvals.

Meanwhile, it agreed to sell an offshore Thai gas field to a unit of Kuwait Petroleum Corp. for $900 million.

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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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