Shell and Chevron agree strategic asset exchange

Andy Brown, Upstream International Director, Shell.

TEXAS, US: Shell Development (Australia) Pty Ltd and Chevron Australia Pty Ltd have entered into a binding agreement for the exchange of Chevron’s 16.7 per cent interest in the East Browse titles and Chevron’s 20 per cent interest in the West Browse titles with Shell’s 33.3 per cent interest in the Clio-Acme titles. In addition to the assets exchanged, a further cash payment from Shell to Chevron of $450 million has been agreed. 

Following completion of this transaction, Shell will hold a 35 per cent interest in the West Browse titles and 25 per cent interest in the East Browse titles. The transaction is consistent with Shell’s growth strategy, securing material direct interests in major LNG supply projects.

“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,” said Andy Brown, Upstream International Director, Shell.

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