Shell Close to Sold its Norwegian Oil and Gas Assets in Late 2022

Shell and Harbour Energy, the largest UK North Sea producer, held talks last year to sell their oil and gas fields offshore Norway, and some assets off the UK. However, price volatility meant that a deal couldn’t be made, sources said to Reuters.

Shell and other majors have been working in recent years to streamline asset portfolios so that they can focus on the most profitable projects. Shell stated that its oil production had peaked in 2019. It is expected to continue declining over the next three decades, as it looks towards the future. Shell also stated that its carbon dioxide emissions likely peaked in 2018, a year earlier than expected.

According to Reuters sources, Harbour Energy and the UK-based supermajor Harbour Energy were in advanced stages of negotiations for the sale by the end 2022.

Norway was the largest supplier of natural gas to Germany, and had just increased its production. Yesterday, the Norwegian Petroleum Directorate stated that Norway would continue to produce high volumes of natural gasoline for at least five more years. Operators have pledged $30.3 million (300 billion Norwegian crowns), to expand existing fields and prolong the lives of existing fields.

Shell, which has been in Norway since 1912 would have been the most recent supermajor to leave the region. In 2018, and 2019, the U.S. majors Chevron, ExxonMobil and Chevron ceased operations on Norway’s Continental Shelf.

According to two Reuters sources, Wael Sawan (Shell’s new CEO) is not currently reviewing Norwegian assets.

Shell has a business in Norway that includes oil and gas assets. It also participates in the Northern Lights carbon storage and capture (CCS), project with Equinor Norway and TotalEnergies France. Northern Lights is Norway’s first license to store CO2 on the Shelf.

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