Royal Dutch Shell Plc (LON:RDSB) is lining up a sale of its stake in its venture with Venezuela’s state oil company, according to a Reuters report, which identifies French oiler Maurel et Prom as the potential buyer.
Shell owns a 40% stake in the oil problematic oil project located in western Venezuela, close to the Colombia border, where operations have been impeded by equipment theft, power cuts and local economic challenges (hyperinflation, food and medicine shortages).
Payments back to joint venture partners such as Shell have reportedly been delayed and have added to the motivation to sell out.
According to Reuters, the potential sale is being ‘analysed’ by the authorities though the transaction has stalled over ‘entrance bonus’ fees required by Venezuela.
Negotiations are currently on hold, the Reuters report added.