MONTREAL (Oil Monster): XRG, the international investment company launched by Abu Dhabi National Oil Company (ADNOC), has agreed to acquire Shell’s 16.67% interest in Australia’s North West Shelf (NWS) Project for a base consideration of $1.45 billion.
The transaction gives XRG exposure to an established Australian LNG export operation while allowing Shell to reduce its position in a mature, non-operated asset. The deal also reflects the different portfolio strategies of the two companies: XRG is expanding its international gas investments, while Shell is concentrating capital on integrated gas positions it considers more strategically advantaged.
The transaction will be carried out through wholly owned subsidiaries of XRG and represents a further expansion of its international natural gas portfolio.
Shell said the agreement carries a base consideration of $1.45 billion and is expected to close in 2027, subject to regulatory approvals and other customary conditions.
Shell said the divestment gives the company an opportunity to realise value from a mature, non-operated asset while concentrating investment on integrated gas positions with stronger strategic advantages.
The company reiterated its ambition to grow LNG sales by 4% to 5% annually through 2030.
The North West Shelf development processes offshore gas from fields in Western Australia’s Northern Carnarvon Basin.
Its Karratha Gas Plant produces liquefied natural gas, liquefied petroleum gas, domestic gas and condensate.
The facility currently has four LNG processing trains with export capacity of 14.3 million tonnes per annum, along with two domestic gas processing trains.
The project is transitioning as production from its original gas fields declines and available processing capacity increasingly supports third-party gas resources.
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