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Shell Sells North West Shelf Stake to Abu Dhabi's XRG for $2 Billion
Abu Dhabi's XRG agrees to buy Shell's stake in the North West Shelf gas project for $2 billion
Key points
- XRG is paying $2 billion for Shell's 16.67 per cent stake in the North West Shelf project.
- The sale covers the Karratha gas plant, offshore platforms and pipelines, permits and gas and condensate reserves.
- The deal is subject to foreign investment approvals and pre-emptive rights for other Shelf partners.
Why it matters. The deal could give XRG a position in an established LNG project close to Asia-Pacific demand growth, though it remains subject to approvals and partner pre-emption rights.
Abu Dhabi's XRG agreed on Tuesday to buy Shell's 16.67 per cent stake in the Woodside Energy-operated North West Shelf gas project in Australia for $2 billion. It is XRG's first Australian investment since a failed $36b bid for Santos last year. The deal remains subject to foreign investment approvals and pre-emptive rights for other Shelf partners.
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Shell Sells North West Shelf Stake to Abu Dhabi's XRG for $2 Billion
Shell has agreed to sell its 16.67 per cent stake in the North West Shelf gas project to Abu Dhabi's XRG for $2 billion. The agreement was announced on Tuesday, and XRG described it as a significant milestone in its strategy to build an international business. The project is operated by Woodside Energy. Shell helped found the project in the 1980s and ends more than 40 years of involvement with the deal. Shell had earlier made an unsuccessful takeover bid for Woodside.