Royal Dutch Shell has agreed to sell stakes in a gas project in a $1.1 billion cash deal in Western Australia.
The decision comes as part of the company’s drive to improve return on investment.
Shell’s 8% equity interest in the Wheatstone-lago Joint Venture and 6.4% interest in the 8.9 mtpa Wheatstone LNG project will be sold to the Kuwait Foreign Petroleum Exploration Company, and will raise the company’s holding in the Chevron-led LNG project in which they are already a partner.
The Chevron-operated Wheatstone LNG plant is being built at Ashburton North, 7.5 miles west of Onslow, Western Australia. The project will initially consist of two LNG trains with a combined capacity of 8.9 mtpa, but will have the potential to be expanded to 15 mtpa, fed by gas from the Wheatstone and Iago fields.
Once the deal is completed, both the Wheatstone-Iago field development and the Wheatstone LNG plant will be joint venture projects between Chevron, KUFPEC, KOGAS, TEPCO and Kyushu Electric Power Company, with Apache Energy also holding a stake in the LNG plant.