Shell Sells 40% Stake In Colombian Blocks To Noble Energy

Royal Dutch Shell PLC sold a 40% stake and handed over operatorship for two major offshore contracts to Noble Energy Inc in a deal signed with the Colombian government.

In a release from the National Hydrocarbons Agency of Colombia, the three announced that Anglo-Dutch Shell sold the stake for an undisclosed amount to US firm Noble just days after signing two "major" exploration and production contracts for the COL-3 and GUA OFF-3 blocks located offshore in the Caribbean Sea.

Under the deal, Shell hands Noble a 40% participation stake and the latter also becomes the operator of the contracts.

The COL-3 and GUA OFF-3 cover an area that exceeds 880,000 hectares. Under a deal signed by Shell on Friday with the Hydrocarbons Agency, the initial phase of the contracts requires investment of at least USD100 million.

Shell Colombia President Ana Maria Duque welcomed Noble to the blocks and added the firm had "received all the relevant approvals" from the Colombian government for the exploration and development of the sites.

"This is a very important step to continue exploring the Colombian Caribbean and building win-win relationships with communities and authorities," Duque added.

Noble Energy Colombia General Manager Ian Gordon added: "Noble Energy will operate these blocks with Shell as a member of the contract, we hope to drill our first well after analyzing in more detail the prospects and obtaining the corresponding approvals from the government, and beyond, Noble Energy hopes to build its business in partnership with the communities and people of Colombia."

On Wednesday, Shell "B" shares were flat at 2,398.50 pence on Wednesday. "A" shares were 0.1% down at 2,390.00p.

Source: lse.co.uk