Energy, Oil & Gas

Shell sells 16.67pc stake in Australia’s North West Shelf project to XRG

Perth
Shell sells 16.67pc stake in Australia’s North West Shelf project to XRG

Shell Australia, a wholly owned subsidiary of Shell, has signed an agreement to sell its 16.67 per cent non-operated interest in the North West Shelf (NWS) project.

The interest will be acquired by wholly owned subsidiaries of XRG for a base consideration of $1.45 billion, subject to customary adjustments, plus an additional milestone-linked contingent payment.

“This agreement reflects our commitment to disciplined capital allocation and portfolio choices,” said Cederic Cremers, Shell’s Integrated Gas President. “The sale realises value from a mature, non-operated asset and supports Shell’s strategy by focusing investment on advantaged integrated gas positions, as NWS transitions in the future towards a third-party toll-processing model. We are proud of the role we played as a founding partner in NWS and the role NWS has in turn played in Western Australia.”

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

Shell maintains a strong presence in Australia, where it operates the Shell QGC project and Prelude FLNG, is developing the Crux project and is a joint venture partner in Arrow Energy and Gorgon.

The transaction has an effective date of January 1, 2026, and is expected to close in 2027, subject to several conditions precedent, including regulatory approvals. -OGN/TradeArabia News Service