Exclusive: Shell energy transition prompted talks to sell Norway business

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Shell held talks with Harbour Energy to sell its Norwegian oil and gas fields last year but could not reach a deal due to gas price volatility and uncertainty over the long-term outlook, three company sources told Reuters.

to sell its Norwegian oil and gas fields last year but could not reach a deal due to gas price volatility and uncertainty over the long-term outlook, three company sources told Reuters.

London-based Shell has said it will focus its oil and gas operations in nine basins around the world, triggering a growing internal competition among assets as it aims to gradually reduce its oil and gas output and grow renewables and low-carbon operations to cut its greenhouse gas emissions. A sale of Shell's oil and gas portfolio in Norway, where it has been for more than 110 years, would mark a continued retreat from the North Sea by the world's largest energy companies which are focusing investments on newer, more profitable basins.Shell shares were little changed at 1145 GMT, while Harbour Energy's were up by 2.5%.

Talks with Harbour Energy, the largest British North Sea producer, reached an advanced stage towards the end of 2022, the sources said, just as Norway cemented its position as Europe's top natural gas supplier after Russia's invasion of Ukraine.

 

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