Royal Dutch Shell is in talks to buy BP’s stake in the Shearwater oil and gas field in the British North Sea for roughly $250 million, three industry sources told Reuters.
Shell, the field’s operator, announced plans last year to expand a natural gas hub around Shearwater, including the construction of a new pipeline, Kallanish Energy uynderstands.
Shell has a 28% stake in Shearwater, BP holds 27.5%, and ExxonMobil has the remaining 44.5%, Reuters reported.
A sale would help BP with its plan to sell $5 to $6 billion of assets following its $10.5 billion purchase in 2018 of BHP’s shale oil and gas portfolio in the U.S.
Shell and BP, which both declined to comment, have held talks in recent weeks and are close to an agreement, two of the sources told Reuters.
While both supermajors have sold significant assets in the North Sea in recent years, both are investing heavily in new projects in the region, particularly in the West of Shetlands area.
Shearwater, 140 miles east of Aberdeen, Scotland, was discovered in 1988 and first developed in 2000.
At peak production, the gas export capacity of the Shearwater hub is expected to be roughly 400 million cubic feet a day of natural gas, according to Shell.
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