Shell, through its Malaysian unit Shell Gas Holdings, completed the sale of its 15 percent shareholding in Malaysia LNG Tiga to the Sarawak State Financial Secretary (SFS) for $750 million.
The transaction has been dated to September 1, 2017, with the net final consideration paid to Shell after adjustments for dividends the company received up to completion is approximately $640 million.
SFS is an existing MLNG Tiga shareholder and with the completion of this transaction, increased its shareholding in MLNG Tiga to 25 percent.
The other shareholders of MLNG Tiga are Petronas with 60 percent equity, Nippon Oil Finance (Netherlands) with 10 percent and Diamond Gas (Netherlands), a Mitsubishi Corporation with 5 percent equity.
Malaysia LNG, a Petronas unit, operates MLNG Tiga as part of the larger Petronas LNG complex in Bintulu.
Shell said this sale is consistent with Shell’s strategy to simplify its portfolio.
Following the expiry of the MLNG Satu and Dua joint venture agreements, MLNG Tiga was Shell’s only remaining interest in the Petronas LNG complex.