Shell’s North Sea division delivers ‘inspiration’ to group

Shell’s chief financial officer said today that the firm’s UK North Sea division was a “source of inspiration” for the rest of the group.

Jessica Uhl said the unit had delivered the “most impressive improvement” across the group’s upstream business and was making an important contribution to cash flow.

The Anglo-Dutch major has been reshaping its portfolio in recent years, allowing it to focus on core assets.

Shell sold a package of North Sea assets to Chrysaor for £3 billion last year.

Ms Uhl said there were no further North Sea sales on the horizon, and that the division was still receiving investment.

The firm has made three final investment decisions (FIDs) as operator in the UK continental shelf this year.

I t c o m m i t t e d t o redeveloping the Penguins field in the northern North Sea in January, followed by FIDs on the Fram project in June, and Arran last month.

The company also has a 50% stake in the BP-operated Alligin project, which got the all-clear in April.

Since 2015, UK upstream production is up 25% while operating costs are down 50%.

Ms Uhl also said Brexit was not expected to have any negative material impact on Shell thanks to the firm’s ability to “manage risk effectively”.

She was speaking after Shell reported one of its “strongest-ever quarters”.

The company posted third-quarter revenues of £78bn, up 32% year-onyear, while pre-tax profits soared 72% to £7.5bn

Jessica Uhl