By An Old EP Hand
Just read Shell wants to sell the share in the DUC (Dansk Underground Consortium for ca 1 billion dollars.)
It was a well-kept secret that the DUC had a marvellous tax deal in Denmark, in the past Shell Denmark was often the number 3 or 4 cash earner for the group due to this tax deal. Only the NAM with the huge gasfields made far more money. (Norway was a lot harder on the oil companies and kept most of the proceeds themselves.)
Not sure whether the tax system has changed the last few years.
And if they can get a lot of money for it, it is a good time to leave the ship there, Maersk has little ideas how to go about milking the licence that was renewed a few years ago. They had mentally accepted the licence would come to an end when the old man Maersk McKinney Moller fixed an extension with the government. He died soon afterwards…
ABOVE FROM A POSTING ON OUR SHELL BLOG
Related Reuters article published 6 Feb:
Royal Dutch Shell is seeking to sell its stake in the Danish Underground Consortium (DUC), an offshore oil and gas joint venture, in what would mark the company’s effective exit from Denmark, three banking sources said. The stake is valued at up to $1 billion, according to two sources.