Abu Dhabi investment firm buys Shell gas stake
Key points
- Abu Dhabi's XRG agreed to acquire Shell's 16.7% stake in the North West Shelf project for at least US$1.45 billion.
- Shell receives immediate capital while XRG gains its first direct entry into the Australian gas market.
- XRG aims to build a strategic international gas position near the fast-growing Asia-Pacific region.
Abu Dhabi's XRG investment arm agreed to purchase Shell (NYSE:SHEL) out of the North West Shelf gas project for at least US$1.45 billion.
The deal marks Shell’s exit from the Western Australia venture after more than 40 years, following its sale of the undeveloped Browse field stake in 2023.
"The North West Shelf combines immediate production, strategic infrastructure, and future upstream development opportunities, making it a strong fit with our long-term ambitions," said XRG International Gas President Mohamed Al Aryani.
The agreement includes offshore gas resources, pipeline infrastructure, processing facilities, and an additional conditional payment tied to a future development decision on the Browse gas field.
XRG stated that the transaction establishes a strategic position to serve gas demand in the Asia-Pacific region.
Following the announcement, the Shell share price was unchanged at $104.94.
The acquisition remains subject to foreign investment approvals and pre-emption rights held by project partners, including operator Woodside Energy (ASX:WDS), BP, Chevron (NYSE:CVX), MIMI, and CNOOC.
The transaction follows XRG’s withdrawal from a proposed $36.4 billion takeover bid for Santos (ASX:STO) in September last year.
