Shell increases Browse equity stake

Shell and Chevron agree strategic asset exchange

20 August 2012

Shell Development (Australia) Pty Ltd (Shell) and Chevron Australia Pty Ltd (Chevron) today announced that they have entered into a binding agreement for the exchange of Chevron’s 16.7% interest in the East Browse titles(1) and Chevron’s 20% interest in the West Browse titles(2) with Shell’s 33.3% interest in the Clio-Acme titles(3). In addition to the assets exchanged, a further cash payment from Shell to Chevron of $450 million USD has been agreed.

Following completion of this transaction, Shell will hold a 35% interest in the West Browse titles and 25% interest in the East Browse titles.

The transaction is subject to governmental approval and regular processes for approval and registration of the dealings.

The transaction is consistent with Shell’s growth strategy, securing material direct interests in major LNG supply projects.

Andy Brown, Upstream International Director for Shell, said: “Shell is pleased to be growing its position in a major Australian gas resource and future Australian LNG supply project.

“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.”

This deal is the latest in a series of recent achievements for Shell’s LNG business in the Asia Pacific region and further demonstrates Shell’s long term commitment to the region.

(1) East Browse titles include WA30R, WA31R, WA32R, WAR2 and TR5.
(2) West Browse titles include WA28R, WA29R and WA275P.
(3) Clio-Acme titles include WA42R and WA205P.

Shell International BV press release