Regional LNG: Shell announces sale of Wheatstone LNG stake in Australia
Monday, January 20 2014 - 10:07 AM WIB
Royal Dutch Shell plc announced 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 liquefied natural gas (LNG) project in Western Australia for a cash consideration of US$1,135 million to the Kuwait Foreign Petroleum Exploration Company (KUFPEC), subject to closing.
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.
The Wheatstone Project is one of Australia?s largest resource projects ? providing greater security of supply and significant economic benefits such as employment, government revenue and local business opportunities.
A final investment decision to proceed with the Wheatstone Project was made in September 2011, with construction started in December that same year.
In conjunction with the Gorgon Project, it reinforces our position as a leading natural gas supplier and liquefied natural gas (LNG) operator in the Asia-Pacific region.
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.
According to the company?s website, the Wheatstone 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%).
Editing by Johannes Simbolon