Shell to Divest Gaza Marine to Buoy Finances, Boost Portfolio
Royal Dutch Shell plc (RDS.A is set to offload its 90% stake in the Gaza Marine gas project to Palestine Investment Fund, moving forward with its $30-billion divestment goal. The financial details of the transaction have been kept under wraps.
The Anglo-Dutch giant had gained ownership of the Gaza Marine tract, located offshore Palestine, via its BG Group buyout. The field was discovered by the BG Group in 2000 but did not progress to the development stage amid political and commercial concerns. Palestine Investment Fund is seeking a capable international partner to hand over 45% of the project’s stake along with designing a field development plan with the operator. Gaza Marine's development will aid in meeting the demand for gas-fired power plants in Palestine and further help it to become an energy exporter.
The move will help Shell proceed with its divestment program. The deal provides the company with a major uplift in its drive to decrease debt following the acquisition of BG Group for $47 billion. The divestment is expected to reduce the company’s cost, and enhance cash flow as well as return to capital. The move will also help the company to upgrade and streamline its portfolio.
With Shell already wrapping up divestment deals worth more than $23 billion, it remains focused to meet its target by 2018. Further, the company announced asset disposals amounting to around $2 billion, and talks for prospective transactions of additional $5 billion divestment deals are already in advanced stages.
Headquartered in Netherlands, Shell is one of the largest integrated energy companies engaged in the production, refining, distribution and marketing of oil and natural gas. The company has a Zacks Rank #3 (Hold).
Royal Dutch Shell plc Price
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Concho topped earnings estimates in each of the preceding four quarters, with an average of 48.89%.
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Continental Resources delivered an average positive earnings surprise of 64.93% in the trailing four quarters.
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