Shell PLC said Tuesday it had completed the sale of its stake in the BP PLC-operated Na Kika, a 50:50 joint venture that is Shell’s only non-operated platform in the Gulf of America.
Ridgewood Energy Corp and Talos Energy Inc acquired Shell’s stake in the platform and the associated fields, as well as Shell’s 100 percent ownership in the Coulomb tieback. Shell said in an online statement it had received $840 million in cash proceeds, after adjustments to the $1.7 billion total price upon signing.
“Shell will receive uncapped upside-linked payments through 2027 and overriding royalty interests on production from new Na Kika tiebacks, subject to conditions”, Shell said.
“The transaction supports Shell’s efforts to actively shape its portfolio to ensure a resilient and increasingly competitive upstream business”, it said.
Talos president and chief executive Paul Goodfellow said separately, “The closing of this transaction marks another important step in executing our strategy to build a long-lived, scaled portfolio and become the leading pure-play offshore E&P”.
The Na Kika semisubmersible platform contributed 37,000 barrels of oil equivalent a day to Shell’s production in 2025, Shell said. Na Kika started production 2003. Coulomb, tied back to the platform, followed suit two years later.
Na Kika accounted for 4.3 million boe of Shell’s proven reserves at the end of 2025, while Coulomb accounted for 7.2 million boe, Shell noted.
“According to Shell’s modeling, Na Kika and Coulomb will not be meaningful contributors to production by 2030”, it said.
“Shell Trading U.S. Co will retain rights to offtake from Na Kika and Coulomb through negotiated agreements with the buyers”, Shell added.
The transactions for Na Kika and the four associated fields – Ariel, Fourier, Herschel and Kepler – had been subject to BP waiving its right to purchase the stake it did not already own.
On the other hand, Shell recently signed an agreement with BP to join five leases containing the Conifer exploration prospect on the United States side of the Gulf, as well as the Tupinambá exploration block in Brazil’s offshore Santos Basin.
Shell Offshore Inc will acquire 30 percent in the deepwater Paleogene leases on the U.S. Gulf. Shell Brasil Petróleo Ltda will acquire 50 percent in Tupinambá.
“The transactions support BP’s disciplined approach to capital allocation in service of becoming a simpler, stronger, more valuable company”, BP said September 2.
BP will remain operator in Conifer and Tupinambá with stakes of 70 percent and 50 percent respectively.
In other investment realignments in the U.S., Shell has agreed to acquire a 169-megawatt (MW) natural gas-fired power plant in Pennsylvania, while selling a 609-MW combined-cycle gas power plant in New England.
“The acquisition secures supply and capacity offtake for SENA in the Mid-Atlantic power grid operated by PJM Interconnection, the largest wholesale electricity market and grid operator in the USA”, Shell said September 11, referring to its subsidiary Shell Energy North America (U.S.) LP.
“SENA’s focus is on power markets where it can play to its strengths, including trading and optimization, backed by increased access to battery energy storage systems and flexible power plants”, Shell said.
On September 1 Shell announced an agreement with Parman Corp and Kimbro Oil Co to acquire Tri Star Energy LLC, where Shell already owns 33 percent.
The acquisition of the remaining shares “makes Shell the full owner of an additional 320 fuel and convenience retail sites in Tennessee and surrounding states, as well as supply agreements with 552 more dealer-owned locations”, Shell said.
“Shell already has the largest branded fuel network in the U.S., with approximately 12,000 primarily wholesaler- and dealer-owned fuel and convenience retail sites across 49 states serving more than seven million customers daily”, Shell added.
“This acquisition significantly strengthens its company-owned presence in the U.S.”
On July 1 Shell said it had completed the sale of Jiffy Lube International to Monomoy Capital Partners for $1.3 billion.
Jiffy Lube, part of Shell for over 20 years as a provider of lubrication, oil change and light repairs for cars and light trucks, comprised about 6.5 percent of Shell’s lubes footprint in the U.S. and Canada, Shell noted.
“Shell has retained its Pennzoil Quaker State, Rotella and other Shell Lubricants brands, along with marketing, manufacturing and distribution of lubricants in the U.S. and Canada that serve consumer, commercial and industrial sectors”, it said.
“As part of the transaction, Pennzoil Quaker State Company retains a long-term lubricants supply agreement with Monomoy.
“The divestment supports ongoing portfolio high-grading by monetizing a non-core Lubricants asset”.
Last year Shell launched a $5-7 billion structural cost reduction target by 2028 relative to 2022.
source: rigzone.com