Shell said to seek stake sale in RM5.9b wind farm


LONDON • Royal Dutch Shell plc and its partners Eneco Holdings NV and Mitsubishi Corp are seeking to sell a stake in two Dutch offshore wind-farm projects that may cost US$1.4 billion (RM5.94 billion) to develop, two people familiar with the plan said.

The companies are looking to reduce their ownership in the Borssele III and IV wind farms by as much as 45%, according to the people who asked not to be named. The fourth partner, infrastructure contractor Van Oord NV, is keeping its share of the project.

The move would allow the companies to scale back financial exposure to the wind farms and redeploy the cash in new projects with the potential for higher returns. Shell has said only that it is trying to draw in additional investors, refusing to detail what that may entail. Its strategy is to focus on developing the early stages of gigantic wind farms and avoid holding the assets as long-term operations, which offers a steady but slower payback.

“This is part of a planned assessment by the consortium on how to best fund the project and future off- shore wind projects for the long term,” Eneco said in a statement on Monday, which Shell said it and the other partners endorsed. “Offshore wind projects require substantial capital. We are in the energy transition for the long-haul.”

The project marked Shell’s first foray into large-scale offshore wind developments. Shell and its partners won a contract to build the facilities 22km off the port city of Zeeland in the Netherlands last December. — Bloomberg