Shell rakes in $1.45 billion for shedding its stake in Australian gas and LNG project
As Shell heads for the exit, ADNOC’s XRG is buying a stake in a Woodside-operated LNG and gas development in Western Australia.
In a bid to optimize its Australian portfolio, Shell Australia, a wholly owned subsidiary of the UK-headquartered Shell, has struck a deal to divest its interest in a gas and liquefied natural gas (LNG) project with XRG, a subsidiary of Abu Dhabi National Oil Company (ADNOC), which includes Abu Dhabi Development Holding Company (ADQ) and global investment firm Carlyle.
Shell has signed an agreement to sell its 16.67% non-operated interest in the North West Shelf (NWS) project to 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 project comprises interconnected joint ventures involving Woodside, Chevron, BP, Shell, MIMI, and CNOOC.
The transaction, which has an effective date of January 1, 2026, is expected to close in 2027, subject to several conditions precedent, including regulatory approvals. Shell’s 16.67% interest entails associated upstream interests, pipeline, and midstream infrastructure.
The firm’s interest also covers varying participating interests in related petroleum and pipeline titles, project agreements, offtake arrangements, NWS project companies, and CNOOC-related joint ventures.
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