HOUSTON – Royal Dutch Shell plc, through its Shell Offshore Inc. affiliate, has agreed to sell the whole of record title interest in the Brutus/Glider assets in the Gulf of Mexico to EnVen Energy Corp.’s EnVen Energy Ventures, LLC.
The Brutus/Glider assets include the Brutus tension leg platform (TLP), the Glider subsea production system, and the oil and gas lateral pipelines used to evacuate the production from the TLP. The Brutus/Glider assets have a combined current production estimate of 25,000 boe/d.
In line with Shell’s global divestment plans, this transaction includes $425 million in cash.
Expected to close in October, the deal covers Green Canyon blocks 114, 158, 202, and 248. However, a representative from Shell told Offshore it has also reserved deep operating rights in Green Canyon blocks 114, 158, and 202.
The Shell representative also told Offshore that the deal also includes favorable terms for Shell to have future potential tieback exploration opportunities near the Brutus TLP. The two companies also agreed to an earn-out mechanism wherein Shell would receive from EnVen a substantial overriding royalty interest on future production from one of the Glider wells recently drilled and brought onstream.
Shell currently produces around 600,000 boe/d and plans to increase production to more than 900,000 boe/d by the early 2020s from already discovered, established reservoirs.