Shell Completes $2.5B Deal

Shell’s (NYSE: RDS.A) wholly owned subsidiary, QGC Common Facilities Company Pty Ltd, has revealed that it has completed the sale of a 26.25 percent interest in the Queensland Curtis LNG (QCLNG) Common Facilities to Global Infrastructure Partners Australia for $2.5 billion.

The sale, which was first announced on December 21, 2020, is consistent with Shell’s strategy of selling non-core assets in order to further high-grade and simplify its portfolio, Shell noted. Shell said the sale will contribute to its expected divestment proceeds, without impact on people or the operations of the QCLNG venture.

The transaction has no impact on the ownership structure of QGC or QCLNG. Shell remains the operator and majority interest holder in QGC, together with CNOOC and Tokyo Gas, whose interests remain unchanged following the completion of the deal. QCLNG Common Facilities include LNG storage tanks, jetties, and operations infrastructure that service QCLNG’s LNG trains.

Global Infrastructure Partners Australia is an affiliate of Global Infrastructure Partners, which is an independent infrastructure fund manager that makes equity and debt investments in infrastructure assets and businesses.

Earlier this month, Shell Egypt and one of its affiliates signed an agreement with a consortium, made up of subsidiaries of Cheiron Petroleum Corporation and Cairn Energy plc, for the sale of Shell’s upstream assets in Egypt’s Western Desert for a base consideration of $646 million, plus additional payments of up to $280 million. In February, Shell Canada Energy reached an agreement with Crescent Point Energy Corp. to sell its Duvernay shale light oil position in Alberta for a total consideration of $707 million. Back in January, the Shell Petroleum Development Company of Nigeria Limited completed the sale of its 30 percent interest in Oil Mining Lease (OML) 17 in the Eastern Niger Delta, and associated infrastructure, to TNOG Oil and Gas Limited for a consideration of $533 million.

To contact the author, email andreas.exarheas@rigzone.com