Royal Dutch Shell has agreed to sell its stake in an offshore gas field in the Philippines for USD460m as part of its strategy to narrow its oil and gas operations, according to BusinessDay.

Shell sold its 45% stake in Service Contract 38 (SC38), a deep-water licence that includes the producing Malampaya gas field, to a subsidiary of the Udenna Group, which already holds a 45% stake in the project.

The base consideration for the sale is USD380m, with additional payments of up to USD80m between 2022 and 2024 contingent on asset performance and commodity prices, Shell said in a statement.

The deal is due to be completed by the end of 2021.

Wael Sawan, Shell’s head of oil and gas production, said the deal “is consistent with Shell’s efforts to shift our upstream portfolio to one that is focused on nine core positions.”

As MRC informed previously, Shell is shrinking its refining and chemicals portfolio as part of a broader shift by oil majors to reduce hydrocarbon emissions and shift to lower-carbon fuels.

Last week, Shell agreed to sell its controlling interest in a Texas refinery to partner Petroleos Mexicanos (Pemex) for about USD596 million. And in early May, Shell announced the sale of its 149,000 barrel per day (bpd) refinery in Washington to Hollyfrontier Corp.