The international oil company Royal Dutch Shell recently disclosed that it plans to restructure its business in North America in order to reduce costs.
Shell will sell two of its onshore shale gas assets, enabling it to obtain land in other areas that are rich in gas while gaining $2.1bn (£1.3bn)
One of the assets that Shell is selling, to Ultra Petroleum, consists of 155,000 acres of land producing natural gas in Wyoming. The deal will secure $925m (£555.8m) for the firm, along with gas and oil-producing acreage in Ohio and Pennsylvania.
The second asset up for sale is Shell’s Haynesville field, which covers 107,000 acres in Louisiana. This will go to Vine Oil & Gas LP of Texas in exchange for $1.2bn (£721m).
Shell representative Marvin Odum said that the company’s restructuring plan in North America, focusing on its oil and shale gas portfolio, should make it better off financially in the long-term.
Along with other major oil firms, Shell aims to cut costs in order to increase profits. As such, the gas assets up for sale are those with high development costs and relatively low revenues. It is expected that properties worth up to $15bn (£9bn) in total could be sold by the end of next year.
The company is a household name and is known for its high-quality products, which include Shell Omala S2 G 320, a heavy duty oil used in extreme pressure environments, such as industrial gears and bearings under heavy load.