Royal Dutch Shell has agreed to sell its 45% share in an offshore gas field in the Philippines.
The buyer for the Malampaya project, which began commercial operations in 2002, is Malampaya Energy, a subsidiary of Udenna Corporation.
The oil and gas supermajor said the base consideration for the sale is $380 million (£267m), with additional payments of up to $80 million (£56.3m) between 2022 to 2024, dependent on asset performance and commodity prices.
The deal is expected to complete by the end of this year.
The announcement comes as the company has reset its business priorities.
Wael Sawan, Shell’s Upstream Director, said: “Today’s announcement is consistent with Shell’s efforts to shift our upstream portfolio to one that is focused on nine core positions.”