Royal Dutch Shell plc has agreed to sell to Israeli-based Delek Group Ltd. its stakes in the producing Caesar-Tonga field in the deepwater Gulf of Mexico (GOM) for $965 million.

Shell Offshore Inc. said the sales and purchase agreement (SPA) is subject to conditions, including regulatory approvals, but it is likely to be completed by the end of September.

“This transaction represents our continued focus on strategically positioning our deepwater business for growth and is consistent with our upstream strategy of pursuing competitive projects that deliver value in the 2020s and beyond,” said Shell’s upstream director Andy Brown. “The sale will contribute to Shell’s ongoing divestment program and allow us to direct resources to the areas where we see the most value in the longer term.”

Average gross production at Caesar-Tonga totals around 70,000 boe/d-plus. The field, in which Shell has a 22.45% stake, is about 190 miles south-southwest from New Orleans in Green Canyon blocks 683, 726, 727 and 770 at water depths of about 4,900 feet.

Caesar-Tonga is operated by Anadarko Petroleum Corp. (33.75%), with stakeholders that also include Equinor SA (23.55%) and Chevron Corp. (20.25%). The asset is tied back to Anadarko’s Constitution spar through subsea equipment.

Delek plans to enter into a long-term SPA for the produce oil with Shell Trading (US) Co.

Shell’s global deepwater production is expected to exceed 900,000 boe/d by 2020 from already discovered and established reservoirs. The portfolio includes growth opportunities in the U.S. GOM, Brazil, Nigeria and Malaysia heartlands, as well as in emerging offshore basins in Mexico, Mauritania and the Western Black Sea.

In last month’s GOM region-wide Lease Sale 252 by the Bureau of Ocean Energy Management, Shell far and away outbid every other company with 87 of the highest offers for a total of almost $85 million.