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Shell share price: Private equity-backed firms eye group’s North Sea assets

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Screen Shot 2016-08-29 at 22.18.50Anglo-Dutch oil major agrees to offload certain assets in Gulf of Mexico

by Tsveta ZikolovaTuesday, 30 Aug 2016, 09:00 BST

Investment companies backed by some of the world’s biggest private equity groups have expressed interest in Royal Dutch Shell’s (LON:RDSA) North Sea assets, the Financial Times has reported. The Anglo-Dutch oil major has unveiled plans to sell some $30 billion worth of assets across its global portfolio over the next three years or so is it looks to shore up its balance sheet in the wake of its acquisition of BG Group which completed earlier this year.

Shell’s share price has been steady in London this morning, having added 0.29 percent to 1,901.00p as of 08:31 BST, as compared with a 0.06-percent rise in the benchmark FTSE 100 index. The oil major’s shares have gained some 12 percent over the past year, and are up by nearly a quarter in the year-to-date.

Inside sources told the FT yesterday that Neptune, funded by Carlyle Group and CVC Capital Partners, and Siccar Point Energy, whose owners include Blackstone, were among the potential bidders for a package of North Sea assets offered by Shell. One person involved in the process, however, cautioned that talks over the assets were at an early stage and the likelihood of a deal would become clearer in the next two months.

Shell has been looking to offload some of its assets in the North Sea as part of its $30-billion disposal programme, with the company’s finance chief Simon Henry having signalled that the group plans to divest between $6 billion and $8 billion of assets this year. Reuters separately reported yesterday that the Anglo-Dutch group had agreed to sell certain assets in the Gulf of Mexico to independent oil and gas company EnVen Energy Corp for $425 million, plus royalty interests.

As of 09:01 BST, Tuesday, 30 August, Royal Dutch Shell Plc ‘A’ share price is 1,900.25p.

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