Shell to sell Caesar-Tonga interest
Shell is to sell its 22.45% non-operated interest in the Caesar-Tonga asset in the US Gulf of Mexico to Delek for $965mn in cash.
Caesar-Tonga is located in Green Canyon blocks GC683, GC726, GC727 and GC770 at water depths of about 4,900 feet (1,500 metres). The field is operated by Anadarko Petroleum, who holds a 33.75% interest. The remaining percentage is currently distributed between Equinor (23.55%), Shell (22.45%) and Chevron (20.25%).
Caesar-Tonga is being developed via a subsea tie-back to Anadarko’s Constitution spar. Current total average production at Caesar-Tonga is over 70,000 boe/d.
Delek is to enter into a long-term purchase and sales agreement with Shell Trading (US) Company for the oil produced.
Caesar-Tonga ties into the Constitution facilities (pictured)