Shell to Sell South Texas Gas Fields to OXY

Shell is to sell a group of gas fields in South Texas, US, to Occidental Petroleum subsidiary OXY USA for $1.8bn.

The fields include all Shell’s gas-producing properties and related assets in South Texas, where Shell first drilled wells in 1953.

The predominately mature tight gas fields produce 200 million cubic feet of gas equivalent per day.

Both firms signed a definitive sales agreement and the transaction is expected to close in early 2011, subject to regulatory approvals.