Shell Australia Pty Ltd, a wholly owned subsidiary of Shell plc, has agreed to sell its 16.67% non-operated interest in Australia’s North West Shelf (NWS) project to wholly owned subsidiaries of XRG P.J.S.C.
The deal carries a base consideration of $1.45 billion, subject to customary adjustments, along with an additional contingent payment linked to the achievement of certain milestones.
The transaction has an effective date of January 1, 2026, and is expected to close in 2027, subject to conditions precedent, including regulatory approvals.
“This agreement reflects our commitment to disciplined capital allocation and portfolio choices,” said Cederic Cremers, Shell’s Integrated Gas president.
The sale will allow Shell to realise value from a mature, non-operated asset as the NWS project transitions towards a third-party toll-processing model, Cremers said.
Shell said the divestment was consistent with its strategy of focusing investment on advantaged integrated gas positions.
The company said it remained committed to growing its global liquefied natural gas (LNG) business, targeting annual LNG sales growth of 4% to 5% through 2030.
Shell retains a significant presence in Australia, where it operates the Queensland Curtis LNG (QGC) project and Prelude floating LNG facility, is developing the Crux project and holds joint venture interests in Arrow Energy and Gorgon.
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