Shell agrees sale of North West Shelf stake for $1.45 billion

Shell Sells 16.67% North West Shelf LNG Stake to ADNOC XRG for $1.45 Billion

Shell Divests Stake in Major Australian LNG Project

Details of the Transaction

Nov 3 (Reuters) - Shell on Tuesday agreed to sell its stake in Australia's North West Shelf project to subsidiaries of ADNOC's XRG for $1.45 billion, as it sheds mature assets to focus capital on higher-return opportunities.

Overview of the North West Shelf Project

The North West Shelf project, one of Australia's biggest LNG export facilities, comprises a number of interconnected joint ventures involving Woodside, Chevron, BP, Shell, MIMI and China's CNOOC. 

Transaction Timeline and Payment Structure

The sale of the 16.67% non-operated interest is expected to close in 2027, and the deal includes an additional milestone-linked contingent payment on top of the base consideration, Shell said in a statement. 

Shell’s LNG Strategy and Future Plans

Shell continues to invest in LNG and integrated gas globally and will grow LNG sales by 4-5% per year to 2030, it said. 

Reporting and Editorial Credits

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sonia Cheema)