Shell Exploration and Production Co. agreed Friday to sell its Michigan assets to Dallas-based Merit Energy Co. for $445 million. The Michigan asset sale is part of Royal Dutch/Shell Group’s announced plans to divest $500 million of exploration and production (E&P) assets this year (see Daily GPI, March 27).

Shell’s E&P is being reorganized into five business units through 2007, and is part of the oil major’s first restructuring since the late 1990s. The Michigan assets were marketed through a competitive bidding process, which was completed in early September, officials said. Subject to further due diligence by Merit, closing is expected by early December 2003.

Merit Energy is privately held, specializing in direct investments in producing oil and gas properties. It acquires, develops and operates producing oil and gas properties on behalf of equity-based, reinvestment-oriented limited partnerships. In 1989, Merit formed its first partnership, and its first operations centered on mature properties located onshore in Texas and New Mexico. Currently, Merit operates in 14 states. It manages 17 limited partnerships with aggregate capital commitments of $1.4 billion.

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