Shell will sell its 16.7 per cent share of the North West Shelf project to XRG, the investment arm of Abu Dhabi's national oil company, for $1.45 billion. The Anglo-Dutch oil major stated the sale realizes value from a mature, non-operated asset and supports its strategy to focus investment on advantaged integrated gas positions. As the North West Shelf transitions to a third-party toll-processing model, the offshore gasfield off Western Australia's coast has helped make Australia a significant energy exporter to the Asia-Pacific region.
Shell has invested in the project since the 1960s. This sale follows Shell's earlier exit from the Browse project in 2023. XRG signalled its interest in Australia's energy market with a failed $18.7 billion bid for Santos last year.
Mohamed Al Aryani, president of XRG International Gas, stated the investment advances their strategy to build a leading international gas business serving growing Asia-Pacific demand. The Australian government approved a project extension to 2070 last year, angering environmental groups. Other shareholders include Chevron, BP, Japan's Mitsui and Mitsubishi.
The transaction underscores ongoing consolidation in the global oil and gas sector as majors streamline portfolios.
Source: Financial Times Companies · Summarized by HeadlinesBriefing