![]() This deal is a good strategic move for both companies. They will also be welcoming transferring staff in Kristiansund and Stavanger in order to leverage their substantial experience and competence for the safe and efficient operation of Draugen in the future. “We are happy that OKEA’s ambition is to uphold and strengthen Draugen’s footprint in mid-Norway. “We are pleased to have found a buyer with an experienced leadership team and with a business strategy that aligns very well with the opportunities offered by Draugen and Gjøa” said Rich Denny, Managing Director of A/S Norske Shell. On completion, Draugen staff onshore and offshore are expected to transfer to OKEA with full continuity of service. We continue to have strategic, long-term positions in Troll and Ormen Lange and are actively seeking new growth opportunities.” “Shell has a long and proud history in Norway. “This deal is part of Shell’s global, value-driven $30bn divestment programme and is consistent with our strategy to high-grade and simplify our portfolio”, said Andy Brown, Shell’s Upstream Director. The Shell share of the assets’ production amounted to approximately 25 kboe/d in 2017, representing about 14% of Shell’s Norwegian production in 2017. The decommissioning costs associated with the assets are currently estimated to be $120 million after-tax (NOK 1,000 million) Shell will retain 80% of this liability up to an agreed cap and OKEA will assume the remaining liability. Upon completion OKEA will become the new operator of Draugen. The transaction’s expected effective date is 1 January 2018. The transaction is subject to regulatory approval and is expected to complete in Q4 2018.
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