Shell sells Gulf of Mexico assets to EnVen for $425 mln

Oil giant Royal Dutch Shell has sold its entire stake in assets held in the US waters of the Gulf of Mexico to Houston-based EnVen Energy Corp for $425 million in cash, it said in a statement. 

The sale of the three blocks, collectively known as the Brutus/Glider assets, is in line with Shell’s global divestment strategy, the company said.

The Brutus/Glider assets have a combined current production estimate of approximately 25,000 barrels of oil equivalent per day, the statement said, adding that the deal is expected to close in October.

Shell reported a 72 percent plunge in net profit last month to about $1.2 billion, due to weak crude prices and high costs following its $54 billion takeover of British BG Group earlier this year.

Earlier this week, the company’s chief energy adviser Wim Thomas told Reuters that the global supply glut that has weighed on oil prices for the past two years may not clear until the second half of 2017.