Shell on Tuesday announced an agreement to sell its interest in 10 assets in the North Sea's oil fields for as much as $3.8 billion.
The deal with oil and gas exploration company Chrysaor includes an initial $3 billion price tag for the areas, which are in United Kingdom waters. Shell could pay another $600 million over the next four years — depending on commodity prices — and up to $180 million more for future oil discoveries.
The energy giant took steps to overhaul its operations in the wake of low oil prices, particularly in the North Sea, which was plagued by aging energy infrastructure in addition to the price slump.
Although Shell officials said that the deal included the majority of its U.K. North Sea production in 2016 — including assets acquired in its 2016 purchase of BG — revamped and new assets are scheduled to begin operating after the deal is completed.
Shell said that about 400 employees are expected to be transferred to Chrysaor.
"Shell has a long and proud history in the U.K. North Sea, to which we remain committed," said Shell’s upstream director Andy Brown. "This deal complements the great strides we have made over the last two years in improving the competitiveness of our U.K. upstream business."
Chrysaor, meanwhile, said that the sale would make the U.K. firm one of the country's largest oil and gas producers.
"These assets, combined with our own experience and the outstanding team who will transfer from Shell, provide an excellent platform for change and growth in the North Sea," said Chrysaor chief executive Phil Kirk.
