Royal Dutch Shell said Wednesday it's $150 million closer to its divestment goals after completing the first phase of the sale of a gas business in Hong Kong.
Shell said it dated the completion of the first phase of the sale of its Hong Kong and Macau liquid petroleum gas business for Dec. 31. The sale was announced in April and valued at $150 million. Shell's branded LPG is still on the regional market under the terms of a long-term licensing agreement.
"Shell continues to operate the LPG plant in Hong Kong, which is part of the second phase of the transaction and is subject to conditions including regulatory approvals," the company stated. "The sale does not impact any of Shell's other businesses and Shell remains committed to helping meet growing energy demand in Hong Kong and Macau."
Shell has plans to leave oil and gas operations in handful of countries as part of a $30 billion divestment program. Around $23 billion of that has been completed to date. The company completed $4.4 billion in sales the day before releasing its earnings report for the third quarter.
An agreement in late 2016 to sell its refining business in Denmark was terminated without closure on Tuesday, however. When it announced the agreement in September 2016, Shell said it would take in about $80 million in capital by leaving the Danish refinery sector behind.
Mounting financial pressures brought on in part by lower crude oil prices and obligations following its merger with British energy company BG Group led the company to call for "lasting changes" in its operations.
Shell reported a net profit of $4.1 billion in the third quarter, up from the $3.6 billion in the previous term. Third quarter profit came from all of its business segments, though earnings came mainly from refining, higher production from new fields and improved market conditions.
Re-assessing Alaska's energy frontier
Less than 80 miles from Prudhoe Bay, home to the giant oil fields that feed the Trans-Alaska Pipeline, lies the site of USGS' latest oil and gas assessment: the National Petroleum Reserve-Alaska and adjacent areas. Managed by the Bureau of Land Management, the NPR-A covers 22.8 million acres, more than the entire state of South Carolina.
The new USGS assessment estimates 8.7 billion barrel … read more
