Multinational Oil & Gas Giant Shell Plc Plans to Reduce Investment in North Sea

Posted on Wednesday 31st August 2016 09:00 by kylechandlers

In order to cut debt, Royal Dutch Shell has reportedly been in discussion with possible bidders, Neptune & Siccar Point businesses for North Sea assets. The company are looking to raise £23 billion from disposals in the hope of improving their financial situation and to protect their profitability.

As of 2015, the company was the world’s third largest generating a profit of 2.2 billion US dollars however with the recent profit drop and competitive industry, Shell are looking for different tactics to boost their business performance.

The crude price plunge has detracted interest for North Sea deals and made it challenging for sellers and buyers to come to a price agreement.

Shell have insisted that it will not abandon the North Sea business where is currently has 33 platforms however the company are looking to sell numerous older assets which would result in a significant downsize.

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