Royal Dutch Shell PLC agreed to sell a minority stake at a liquefied natural gas (LNG) export project in Australia to Global Infrastructure Partners (GIP) for US$2.5 billion.
The oil major is to sell a 26.25 percent interest in the Queensland Curtis LNG Common Facilities in a deal that is expected to be completed in the first half of next year, the company said in a statement yesterday.
The common facilities are completely owned by Shell and include LNG storage tanks, jetties and infrastructure that service the venture.
Photo: AFP
The deal comes as the oil giant targets annual divestment of US$4 billion in a bid to shore up its balance sheets.
Reducing its net debt would help Shell meet its pledge to boost dividends, which it cut earlier in the year for the first time since World War II.
Shell is to remain the majority owner and operator of the LNG export plant, one of Australia’s biggest.
China’s CNOOC Ltd (中國海洋石油) has a 50 percent equity stake in one of the plant’s production trains, while Tokyo Gas Co holds a 2.5 percent equity in another one, according to Shell’s Web site.
“This decision is consistent with Shell’s strategy of selling non-core assets in order to further high-grade and simplify Shell’s portfolio,” Shell said in the statement.
It also comes after the Australian government has touted the gas industry as a key engine for nationwide growth out of this year’s recession, even as energy prices have fallen and other major projects have been beset by holdups.
Shell yesterday also said that it expects charges of up to US$4.5 billion in the fourth quarter after a turbulent year for oil prices in the fallout from the COVID-19 pandemic.
“Post-tax charges ... between US$3.5 to US$4.5 billion in relation to impairments, asset restructuring and onerous contracts are expected in the fourth quarter,” the company said in a statement.
Shell is to present its full-year earnings early next year.
Additional reporting by AFP
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