Oil major Royal Dutch Shell PLC (RDSB.LN) said Thursday it has completed
the acquisition of Repsol S.A.'s (REP.MC) liquefied natural gas
portfolio outside North America for $3.8 billion net, slightly lower
than the $4.4 billion originally agreed last February.
The purchase price has been amended to include the exercise of
pre-emption rights of the BBE power plant in Spain by an existing
partner, as well as other adjustments such as the financial performance
of the portfolio and working capital movements since Oct. 1, 2012, Shell
said.
Shell will also assume balance sheet liabilities of $1.6 billion, down from $1.8 billion as originally agreed.
Under the deal agreed on Feb. 26, 2013, Shell is buying a
package of assets from Repsol, including the Spanish company's
liquefaction facilities in Peru and Trinidad and Tobago along with an
LNG import terminal in Spain.
The deal will immediately contribute additional cash flow to
Shell, while requiring limited on-going capital expenditure, the firm
said.
The deal closed in 2014. Shell's capital investment in the
fourth quarter of 2013 will reflect $3.4 billion for this transaction
with the remainder of $2.0 billion booked in 2014, of which $1.6 billion
is a non-cash item relating to finance ship leases.
Shell shares closed in London Tuesday at 2280 pence, giving a market capitalization of 56.38 billion pounds ($92.88 billion).