Shell announced today the signing of an agreement with Hess Corporation to acquire its interests in the Beryl area fields and the Scottish Area Gas Evacuation System (“SAGE”), for US$ 525 million.
The Beryl Area includes 12 fields located on the UK Continental Shelf. The fields are operated by Apache and with the acquisition Shell’s interest in the different fields will increase by a range of between 9-65% depending on the field.
The Beryl cluster has a far longer anticipated lifetime than originally thought and may produce for a further two decades. The acquisition should help to enhance the performance and economic potential from key Shell North Sea operated and non-operated assets, lifting Shell’s production in the Beryl area fields from currently 9 thousand boe/d to 24 thousand boe/d. Shell intends to invest in these assets to substantially extend the production life, for potentially a further 20 years.
[mappress]
Press Release, October 25, 2012; Image: apachecorp