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Shell agrees to sell half of Holstein interest

Date: Monday 10 Sep 2012

LONDON (ShareCast) - Royal Dutch Shell has agreed to sell a 50 per cent working interest in the Holstein Field, a mature deepwater asset which covers Green Canyon Blocks 644, 645 and 688 in the Gulf of Mexico, to Plains Exploration and Production (PXP).

The sale, which follows an unsolicited offer from PXP, will be made for around $560m.

The transaction is effective from October 1st and is expected to close by the year-end.

Shell's 50% interest represents about two percent of the company's overall Gulf of Mexico net production and had a 30-day net average production of 7.4 kboe/d prior to Hurricane Isaac.

The share price rose 0.37% to 2,303.50p by 15:36.

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