Shell completes $541m sale of Appalachia shale gas asset to National Fuel Gas

Royal Dutch Shell said that one of its subsidiaries SWEPI has wrapped up the $541 million divestiture of its Appalachia shale gas asset to National Fuel Gas Company‘s subsidiaries Seneca Resources Company and NFG Midstream Covington.

The deal, which was announced in May 2020, includes the transfer of nearly 450,000 net leasehold acres in Pennsylvania, with about 350 producing Marcellus and Utica wells in Tioga County and related facilities. The present net production of the wells are nearly 250 million standard cubic feet per day.

Also included in the deal are the transfer of the Shell-owned and operated midstream infrastructure.

The company stated: “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.”

Shell completes $541m sale of Appalachia shale gas asset to National Fuel Gas. Photo courtesy of Jiri Buller/Royal Dutch Shell plc.