Shell sells out of Woodside


ENERGY giant Royal Dutch Shell has sold its entire stake in Woodside Petroleum for $3.5 billion.

Shell announced early this morning it had sold its 13.3 per cent stake in Australia’s biggest stand-alone oil and gas producer.

The Anglo-Dutch titan has been an investor in Woodside for more than 30 years.

Shell struck a deal to sell 64 per cent of its holding for $31.10 a share in a deal worth $2.2 billion late Monday.

media_cameraWoodside is Australia’s biggest pureplay oil and gas producer.

This morning it said it had sold its entire stake in Woodside following strong demand from institutional investors.

Shares in Woodside were down more than 3 per cent to $31.28 in early trade.

The sale is the latest undertaken by Shell which launched a $US30 billion asset sales program following its acquisition of the rival BG Group in 2015.

“This sale is another step towards the completion of our three-year, $US30 billion divestment program, which is an important part of our strategy to reshape Shell, to deliver a world class investment case, and to strengthen our financial framework, Shell chief financial officer Jessica Uhl said.

media_cameraWoodside is led by chief executive Peter Coleman and chairman Michael Chaney.

“Proceeds from the sale will contribute to reducing our net debt.”

Shell partnered with Woodside in the early 1960s to develop the massive North West Shelf oil and gas project off the coast of Western Australia.

It has been looking to sell out of Woodside for a number of years, classifying its stake as “available for sale” in its 2016 accounts.

It sold off major stakes in 2014 and 2010.

Its decision to pull the trigger on the latest and final sale follow’s Woodside’s share price climbing more than 11 per cent over the past three months.

Originally published as Shell sells out of Woodside

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