Royal Dutch Shell said on Monday it has agreed to sell its 8% equity interest in the Wheatstone-Iago Joint Venture and 6.4% interest in the 8.9 million tonnes per annum Wheatstone LNG project in Western Australia for a cash consideration of US$1,135 million to the Kuwait Foreign Petroleum Exploration Company (KUFPEC).
Shell Chief Executive Officer 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 world-wide portfolio to improve Shell’s capital efficiency.”
The agreement with KUFPEC, an existing Wheatstone joint-venture partner, ensures there will be no impact on existing commercial agreements, Shell said in a statement.
The Wheatstone project will include an onshore facility located at Ashburton North Strategic Industrial Area (ANSIA), 12 kilometres west of Onslow in Western Australia’s Pilbara region. The foundation project includes two LNG trains with a combined capacity of 8.9 million tonnes per annum (MTPA) and a domestic gas plant.
The LNG project is a joint venture between Australian subsidiaries of Chevron (64.14%), Apache (13%), Kuwait Foreign Petroleum Exploration Company (KUFPEC, 7%), Shell (6.4%), and Kyushu Electric Power Company (1.46%), together with PE Wheatstone Pty Ltd (part owned by TEPCO, 8%).