Royal Dutch Shell confirmed that it and partner Exxon Mobil have terminated the planned divestment of their combined natural gas interests in Britain’s Southern North Sea to Viaro Energy. The portfolio comprised stakes in ten offshore gas fields, representing approximately 200 million cubic feet per day of gross production. Shell had been seeking regulatory clearance from the U.K. Competition and Markets Authority and consents from joint-venture partners, but said that prevailing market conditions and outstanding commercial approvals could not be aligned within its targeted transaction timetable.

The collapse of the planned sale delays Shell’s strategy to reallocate capital from mature gas assets into higher-growth renewables and hydrogen projects. Shell had initially indicated that proceeds from the divestment—estimated by analysts to range between $1.5 billion and $2.0 billion—would contribute to further debt reduction and underpin an accelerated share buyback program. Investors will now await revised guidance on asset-rotation plans, with Shell’s finance chief set to outline adjustments to the 2026 capital expenditure framework at the upcoming first-quarter results on May 6.