Shell sells US Appalachia assets to National Fuel for US$541m
03 August, 2020
Shell has completed the sale of its Appalachia shale gas position to National Fuel Gas Company and its subsidiaries Seneca Resources Company, LLC and NFG Midstream Covington, LLC, for US$541m (£413m).
Appalachia operations are located in the rural northern and western portions of Pennsylvania, where they drill and produce dry gas from the Marcellus and Utica formations.
Shell entered the area in 2010 after acquiring 750,000 leasehold acres from East Resources.
The transaction includes the transfer of ~450,000 net leasehold acres across Pennsylvania, with approximately 350 producing Marcellus and Utica wells in Tioga County and associated facilities.
The transaction also includes the transfer of the Shell owned and operated midstream infrastructure.
Shell continues to have attractive opportunities in its shale portfolio both inside and outside the United States, which are being operated with a focus on driving down costs while increasing efficiency in all areas of our business.