Shell Expands in Trinidad Upstream

Shell has confirmed that it signed an agreement earlier this week to acquire the interests of Chevron's subsidiary in Trinidad & Tobago, including its holdings in the East Coast Marine Area Blocks 6, 5a and E for some US$250mn. The deal is subject to certain customary conditions.

Shell's producing and exploration assets in the Caribbean nation were acquired under its $54bn acquisition of BG Group last year and represent a core gas production asset to the company. Late last year Shell also agreed to buy acreage there from UK gas utility Centrica.

"Shell continues to actively evaluate other options to increase supply from our existing assets, as well as pursue additional opportunities such as the previously announced purchase of Centrica's interests in the North Coast Marine Area," said Derek Hudson, vice president Shell Trinidad & Tobago.

This transaction will allow Shell to optimize its developments across the East Coast Marine Area, a core component of Shell's interests in Trinidad & Tobago supplying gas to both the domestic market and Atlantic LNG, the Anglo-Dutch major said. It said the deal is expected to close mid-2017.

The company continues with its disposal programme, announcing completion May 31 of the sale of most of its Canadian oil sands business – it will retain just 10% in Athabasca – and all of its Australian aviation fuels business. Both deals have been previously announced. 

Mark Smedley