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Shell reportedly eyeing US Gulf of Mexico asset disposal

What is the strategic rationale and who are the likely buyers?

1 minute read

Mark Oberstoetter

Head of Americas (non-L48) Upstream Research

Mark has extensively covered the North Slope, deepwater, oil sands and unconventional sectors.

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Recent news reports suggest that Shell is exploring the sale of mature assets, Auger and Conger, in the US Gulf of Mexico. Should the disposal materialise, it makes sense from a strategic perspective and would continue the company’s ongoing refresh of its US offshore portfolio.

We’ve been expecting an active round of US GOM asset rationalization for over a year. And while the exact timing of specific disposals is hard to pick, the pool of likely buyers isn’t. More constructive price outlooks could prove just the catalyst for E&Ps like Talos, Ridgewood, Navitas and even Murphy to pounce.

What company portfolio would the Auger asset fit best? And would the asset help or hurt the profile of various buyers?

In the video below, our industry experts share their perspectives on M&A activity in the US Gulf of Mexico and use Wood Mackenzie Lens to evaluate how the asset package would hypothetically merge with Talos’ portfolio, looking at metrics such as production, cost, NPV, and emissions intensity.

 

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