Shell to sell U.S. Gulf assets to Talos Energy, Ridgewood for $1.7B

[Shell Holds Annual General Meeting In London]
Scott Barbour/Getty Images News

Shell (SHEL [https://seekingalpha.com/symbol/SHEL]) said post-market Tuesday it agreed to sell [https://seekingalpha.com/pr/20569239-shell-to-sell-interest-in-gulf-of-america-platform] certain deepwater assets in the U.S. Gulf to Talos Energy (TALO [https://seekingalpha.com/symbol/TALO]) and Ridgewood Energy for a total of $1.7B in cash.

The acquired assets include Shell's (SHEL [https://seekingalpha.com/symbol/SHEL]) 50% non-operated working interest in the BP-operated (BP [https://seekingalpha.com/symbol/BP]) Na Kika platform and four associated fields in the U.S. Gulf—Kepler, Ariel, Fourier, and Herschel—as well as its 100%-owned Coulomb tieback.

Shell's (SHEL [https://seekingalpha.com/symbol/SHEL]) entitlement share of production from the assets in 2025 totaled 37K boe/day; the company said the fields were ​not expected to be meaningful contributors to its production ⁠by 2030.

Talos (TALO [https://seekingalpha.com/symbol/TALO]) said [https://seekingalpha.com/pr/20569226-talos-energy-announces-strategic-acquisition-of-gulf-of-america-deepwater-oil-assets] ​its share of the consideration is $850M, with final net cash consideration expected at $450M-$500M after interim cash flow from the effective date of July 1, 2025; the transaction is expected to close by year-end 2026.

MORE ON SHELL AND TALOS ENERGY

* Shell: Turnaround Efforts Showed In The First Quarter Report [https://seekingalpha.com/article/4913661-shell-turnaround-efforts-showed-in-the-first-quarter-report]
* Shell: Shrinking Reserves, Lackluster Growth, And An Overpriced Stock [https://seekingalpha.com/article/4913015-shell-shrinking-reserves-lackluster-growth-and-an-overpriced-stock]
* Talos Energy: Unlocking Hidden Value Beneath The Gulf [https://seekingalpha.com/article/4891131-talos-energy-stock-unlocking-hidden-value-beneath-the-gulf]