XRG agrees $1.45bn deal to buy Shell stake in North West Shelf

Shell announced on Tuesday it has agreed to sell its 16.67% non-operated interest in Australia’s North West Shelf LNG project for a base $1.45 billion plus a milestone-linked contingent payment. The buyer is XRG, international energy investment arm of Abu Dhabi National Oil Co, through wholly owned subsidiaries; Shell Australia Pty Ltd is the seller. The deal is effective 1 January 2026 and expected to close in 2027 subject to regulatory approvals. XRG will assume certain decommissioning obligations and provide security for them. NWS has 14.3 million tonnes annual liquefaction capacity and comprises interconnected joint ventures involving Woodside, Chevron, BP, Shell, MIMI and CNOOC. Cederic Cremers said: “This agreement reflects our commitment to disciplined capital allocation and portfolio choices. The sale realises value from a mature, non-operated asset and supports Shell's strategy by focusing investment on advantaged integrated gas positions.” Shell targets growing LNG sales by 4-5% annually through 2030. It sold its interest in the proposed Browse development in 2023. Contested: base consideration is $1.45 billion; some reports cite $1.5 billion; The Australian Financial Review headlined $2.1b. Regulatory approvals remain before the expected 2027 close.