Shell has called off its agreement with Regal Petroleum due to a change in situation.

Shell has decided not to proceed with the Memorandum of Understanding (MOU) with Regal Petroleum plc that was signed in mid November, due to a change in Regal’s management.

The MOU would have given Shell a 51% interest in Regal Petroleum (Jersey) Limited, making Shell the operator of gas fields in the Dnieper Donetsk region of Ukraine.

However, on Monday 26 November, Shell announced that it would not be pursuing the agreement. Citing a change in Regal Petroleum’s management as the reason for the change in situation, the company said in a statement: “The management change of 22 November at Regal was not expected by Shell, and we see from the new management’s comments that they may have changed their thinking on this transaction.

“Regal has indicated that they would like to review options. Therefore we have decided not to proceed with the MOU with Regal.”

To view a previous article written about the announcement of the MOU, please click here.