Royal Dutch/Shell's unit Shell Development (Australia) Pty. Ltd. has decided to sell its interests in a number of noncore assets in Western Australia. These include the company's 28.57% stake in Barrow Island oil field and its 35.71% interest in the Thevenard Island joint venture.
The properties have been put up for tender.
Barrow Island field is estimated to contain 110 million bbl of oil, while the six Thevenard-group fields (Saladin, Yammadery, Roller, Skate, Cowle, and Crest) are estimated to contain 35 million bbl of oil.
Shell considers the assets mature and believes it is time to reconsider the company's continuing involvement in them.
The assets are expected to fetch $150-200 million (Aus.), based on Shell's net share of the fields' remaining oil reserves-about 44 million bbl.
Shell has also put up for tender a number of exploration permits in the Carnarvon basin region. Most of the interests are held in joint venture with units of Chevron Corp., Texaco Inc., and Mobil Corp. and are operated by the West Australian Petroleum Pty. Ltd. consortium (WAPET).
Shell says it wants to focus its efforts in the region on a number of other undeveloped discoveries and exploration acreage in four areas: the greater North West Shelf, the Timor Sea, Bass Strait, and Canning basin. And it wants to manage this large portfolio effectively.
The planned sale does not affect Shell's interest in the WAPET-managed Gorgon gas field.
Shell wants indicative offers by Dec. 8. Local and overseas buyers are being sought.