Shell has agreed to sell its 19.6% stake in the West Qurna 1 oil field in southern Iraq to a subsidiary of Itochu Corporation for $406 million, The National reported.
The purchaser will assume debt of $144 million as a part of the transaction. The sale is expected to be finalised within the next few days and has an effective date of December 2015.
The divestment is a part of Shell’s current $30 billion divestment program to streamline its upstream portfolio. In reshaping their portfolio, Shell sold $3.8 billion in North Sea oil and gas assets to Chrysaor and a $1.23 billion stake in the Corrib gas field in Ireland to to a unit of Canada Pension Plan Investment Board (CPPIB), Royal Dutch Shell Group reported in July 2017.
“Iraq is an important country for the Shell Group and exiting West Qurna 1 allows us to focus our resources on other assets in our Iraq portfolio,” said Andy Brown, Shell’s Upstream Director.
“Shell remains committed to working with its partners to redevelop Iraq’s energy infrastructure by capturing associated gas, through the Basrah Gas Company joint venture for domestic and regional consumption,” Brown continued.