Shell to offload Norwegian assets to Okea

The transaction, made via the oil and gas giant's local subsidiary Norske Shell, is expected to be completed by the end of the year.

After acquiring Shell's 44.56% stake in Draugen, OKEA will become the new operator of the project.

Shell told investors on Wednesday that decommissioning costs associated with the assets were estimated to be around $120m after-tax, 80% of which it would cover, while OKEA will assume the remaining liability.

Production at Draugen and Gjøa, which Shell held a 12% stake in, amounted to approximately 25,000 barrels of oil per day in 2017, roughly 14% of the producer's Norwegian output last year.

"This deal is part of Shell's global, value-driven $30bn divestment programme and is consistent with our strategy to high-grade and simplify our portfolio", said Andy Brown, Shell's upstream director.

"Shell has a long and proud history in Norway. We continue to have strategic, long-term positions in Troll and Ormen Lange and are actively seeking new growth opportunities," he added.

As of 1330 BST, Shell shares had gained 0.11% to 2,665p.