Royal Dutch Shell is currently offering 16 assets worth more than $500 million for sale as part of its vast $30 billion three-year asset sales programme, the oil and gas company’s head of upstream, Andy Brown has said. The Anglo-Dutch company launched the programme to reduce its debt following the acquisition of BG Group earlier this year. Uncertainty over the future oil price has led to a sharp slowdown in deal making in the sector in recent years.
“There are 16 assets currently in the market that are above $500 million in value,” Brown told the Oil and Money conference in London. Oil giant, Royal Dutch Shell, is generally eyeing a possible $40billion spin-off of non-core assets around the globe, as it grapples with a $70billion debt pile following a takeover of BG Group earlier this year. Chief financial officer, Simon Henry, told analysts that a float of Shell’s non-core assets was “very much on the agenda.”
The comments were made after the Anglo- Dutch multinational announced its intention to sell off assets totaling $30billion over the next three years in an attempt to protect its dividend, after the merger with BG left it with a stretched balance sheet. Analysts at Exane BNP Paribas are now concerned that despite its attempts to offload assets, “a dry market for asset sales leaves Shell exposed