Royal Dutch Shell claims Shell EP Middle East Holdings B.V. has agreed to sell the entire share capital of Shell Iraq B.V (SIBV), which holds its 19.6% stake in the West Qurna 1 oil field, for $406 million to a subsidiary of Itochu Corporation.
According to Shell, the purchaser will also assume a $144 million debt as part of the transaction.
Since joining the project in 2009, Shell has enjoyed successful cooperation with its partners in the West Qurna 1 venture, which will continue to be operated by ExxonMobil, Shell said.
“Iraq is an important country for the Shell Group, and exiting the West Qurna 1 allows us to focus our resources on other assets in our Iraq portfolio,” Shell’s Upstream Director Andy Brown said. “We are grateful for the support of the Iraqi government during the divestment process,” he said, adding that Shell remains committed to working with its partners to redevelop Iraq’s energy infrastructure by capturing the associated gas, through the Basrah Gas Company (BGC) Joint Venture, for domestic and regional consumption.
“This deal maintains the momentum behind Shell’s $30bn divestment programme and is in line with the drive to simplify our upstream portfolio and reshape the company into a world-class investment,” Brown said.
Shell’s other businesses in the country will not be affected by this divestment, the company said.