Shell increases stake in Schiehallion, divests Canadian Seal assets

Shell has increased its stake in the North Sea Schiehallion field while selling its interest the Seal area in Canada to Murphy Oil Company.

Shell acquired Murphy Schiehallion's 5.9% stake in the Schiehallion field west of Shetlands taking its stake to 55%, saying that it "offers Shell access to substantial additional reserves and redevelopment potential in the UK, a current and future heartland for Shell Upstream in Europe."

In a separate deal Shell agreed that Murphy, an active developer in the Seal Area in Canada and Shell's partner in a number of assets, will take over Shell's interest and operatorship of all the Seal facilities and leases.

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

Shell commented: "This divestment does not impact Shell's focus on growth activities within other parts of its Peace River leases. Shell has significant land holdings in the Peace River oil sands and has a regulatory application under review to increase its thermal production to 80,000 barrels per day with its Carmon Creek Project."

CM