Royal Dutch Shell, the oil and gas group, is selling assets including its European liquid petroleum gas business and fields in the North Sea to help meet the cost of its $28bn capital spending programme this year, according to people involved in the proposed deals.
The company expects to raise $2bn-$3bn this year from selling assets that are not central to its growth plans, particularly downstream assets such as refining and marketing operations in mature markets such as Europe. It is also selling some mature oil and gas fields in the North Sea and Nigeria.
Buyers have been invited to submit indicative bids, expected to go up to about €1bn ($1.4bn), for its French-based European LPG arm, which sells bottled gas to rural homes and caravans. Axa Private Equity, Bain Capital and PAI are in the running for the business, which had earnings before interest, tax, depreciation and amortisation of about €120m last year.