Yemisi Izuora
Oil giant Shell has renewed its long time ambitions to be a major player in renewable power, with the goal to turn the company into the world’s biggest electricity producer. But those plans were shelved after Sawan took the helm in early 2023 and vowed to focus more squarely on delivering returns for shareholders
However, Shell Plc is preparing to launch a sale of its offshore wind farms in the oil major’s latest move away from renewable energy to focus on its higher-returning fossil fuel business.
The company has tapped advisers from Rothschild & Co. and PJT Partners Inc. to lead the sale, which could fetch over $1 billion, people familiar with the matter said, asking not to be named because they aren’t authorized to speak publicly. The process could kick off as soon as the end of this year, with a sale likely to take place in 2027, the people said.
Representatives for Shell, Rothschild and PJT declined to comment, World Oil reports.
The company’s Chief Executive Officer Wael Sawan has sought to cut costs and offload low-returning assets since taking over more than three years ago.
The plan to sell the offshore farms marks a further departure from the British energy giant’s past strategy to diversify into green electricity, with a strong emphasis on wind energy.
It follows the ongoing divestments of Shell’s European onshore renewables arm, as well as Indian renewable power company Sprng Energy, which it bought in 2022 for $1.55 billion.
The company also walked away from plans to develop offshore wind farms in Scotland last year. Put together, the disposals will leave Shell with little left in its portfolio of green power assets.