Shell, the Anglo-Dutch energy giant, and Exxon Mobil, a leading American oil company, have agreed to divest NAM, their Dutch joint venture that operates a substantial gas business in Europe. Reuters reported this development, noting NAM’s position as one of the region’s oldest and most extensive natural gas producers. The sale is framed by the partners as a strategic move to refocus on higher-priority assets, especially as geopolitical and supply challenges from Russia complicate the energy landscape. The entities involved are signaling a swift transaction, aiming to quickly unwind the asset in light of shifting priorities and market conditions, according to Reuters’ briefing.
NAM’s asset base has long underpinned European gas supply, with a legacy footprint that dates back several decades. Reuters indicated that the sale could attract strong interest from regional and international buyers who value NAM’s established infrastructure and access to gas markets in the region. The two parent companies are reportedly prepared to divest their stakes in a transaction that could reflect a combined valuation in the vicinity of one to one and a half billion dollars, with the proceeds expected to be shared equally. Even as the market contends with supply disruptions and a broader push toward energy security, the sale is positioned as a disciplined response to a portfolio that no longer aligns with Shell and Exxon Mobil’s most urgent strategic objectives, Reuters observed.
A document obtained by Reuters provides a snapshot of NAM’s operating performance from 2021, showing production at about 2.4 million cubic meters per day. The same source suggested that with additional investments in capacity, production could be enhanced to roughly 2.8 million cubic meters per day. While these numbers reflect a robust baseline, the report also notes that the facilities are aging, and the owners have concluded that continued capital expenditure to extend their life may no longer be the best use of resources. The implied conclusion is that the markets and the parent companies prefer to redeploy capital toward assets with greater near-term growth potential or strategic alignment, particularly in the current energy environment where supply reliability and diversification are highly valued.
In a separate update that speaks to Shell’s ongoing investment strategy, the company disclosed plans to develop the Rosmari-Marjoram gas field situated off the coast of Malaysia. The project is designed to yield substantial daily gas volumes, delivering up to 800 million cubic feet per day at peak, with commercial production anticipated to commence in 2026. This development underscores Shell’s strategy to strengthen gas supply security and capture growth opportunities in Southeast Asia, aligning with expectations that new production adds to regional energy resilience while contributing to the company’s global gas portfolio. The Rosmari-Marjoram initiative illustrates how major producers are balancing short-term asset dispositions with strategic investments in high-potential basins around the world, as industry observers watch for how these moves reshuffle the competitive landscape.”