AI Summary
SWEPI LP, a subsidiary of Royal Dutch Shell plc, has completed the sale of its Appalachia shale gas position to Seneca Resources Company, LLC and NFG Midstream Covington, LLC, each of which are subsidiaries of National Fuel Gas Company (“NFG”).
The consideration amount of $541 million, less closing adjustments, is paid fully in cash. The transaction has an effective date of January 1, 2020.
Shell has operated this asset over the past decade and is proud of the relationship it has built with the local community in Appalachia while delivering strong operational performance and commitment to safety.
- 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 remains committed to Pennsylvania, for example through our Pennsylvania Petrochemicals Complex which brings new growth and jobs to the region, with up to 6,000 construction workers involved in building the new facility and an expected 600 permanent employees when completed.
- Shell continues to have attractive opportunities in its Shales portfolio both inside and outside the United States, which we operate with a focus on driving down costs while increasing efficiency in all areas of our business.
