Royal Dutch Shell plc has agreed to sell its 8% equity interest in the Wheatstone-Iago joint venture and 6.4% interest in the Wheatstone liquefied natural gas (LNG) project in Western Australia for a cash consideration of US$1,135 million to the Kuwait Foreign Petroleum Exploration Co. (KUFPEC). The Wheatstone LNG project produces 8.9 million tonnes per annum.
Shell CEO Ben van Beurden commented, “Shell will remain a major player in Australia’s energy industry. However, we are refocusing our investment to where we can add the most value with Shell’s capital and technology. We are making hard choices in our worldwide portfolio to improve Shell’s capital efficiency.”
The agreement with KUFPEC, an existing Wheatstone joint-venture partner, ensures that there will be no impact on existing commercial agreements.