Shell is to pay $850,000 cash in completion of the deal and will carry Northern Petroleum’s costs for up to $4 million in seismic costs and up to $50 million on one exploration well.
Shell has also acquired a pre-emptive right to Northern Petroleum’s share in the event of any change in control at the asset or corporate level.
Northern Petroleum chief executive Keith Bush said the deal showed the value of its Italian asset portfolio and strategy of partnering with bigger companies to maximise the assets’ value.
The
