Shell to sell certain Gulf of Mexico assets to EnVen Energy

Houston-based EnVen Energy plans to purchase some of Shell’s Gulf of Mexico assets.

EnVen Energy purchases Brutus/Glider assets for $425M

Aug 29 (Reuters) – Royal Dutch Shell Plc said it has agreed to sell certain assets in the Gulf of Mexico to independent oil and gas company EnVen Energy Corp for $425 million, plus royalty interests.

Houston-based EnVen plans to buy the Brutus/Glider assets, which include a subsea production system, and the deal is expected to close in October.

The Brutus/Glider assets have a combined current production estimate of about 25,000 barrels of oil equivalent per day (boe/d), which is about 4 percent of Shell’s total production.

The company plans to sell some $30 billion worth of assets over the next three years or so to help pay for its $54 billion acquisition of BG Group in February. The deal forced Shell to sharply increase its borrowing in order to maintain its dividend policy at a time of low oil prices.

The Anglo-Dutch company plans to divest $6-$8 billion of assets this year, its Chief Financial Officer Simon Henry said in July.

(Reporting by Vishaka George in Bengaluru and Ron Bousso in London; Editing by Shounak Dasgupta)