Royal Dutch Shell has agreed to swap interests in two major natural gas projects in Australia with Chevron Corporation, according to statements from the two companies Monday.
Chevron will transfer to Shell its interests in the Browse LNG project in Western Australia, which has an estimated value of some $30 million, while Shell will transfer its 33.3-percent interest in two gas fields connected to its Wheatstone project, also located in Western Australia. Shell will also make a $450 million cash payment to Chevron.
Shell will acquire Chevron's 20-percent interest in the West Browse assets and a 16.7-percent interest in East Browse. Following the completion of the transaction, Shell will hold a 35-percent interest in West Browse and a 25-percent interest in East Browse.
"Acquiring the remaining interests in WA-205-P and WA-42-R fits strategically with our long-term plans to grow our Wheatstone area resource base, and create expansion opportunities for the Wheatstone Project," said Chevron vice chairman George Kirkland in a statement Monday.
Shell upstream international director Andy Brown commented:
"This is a good deal, not only because it aligns with Shell’s strategy of bigger direct stakes in key gas resources, but because it also helps to simplify the ownership of the Browse gas fields. The Browse gas fields are a key LNG development opportunity for Australia. We’re committed to continue working with Woodside (as operator), the other JV participants and key stakeholders to secure the best possible development plan for this important resource."
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