Shell to reduce stake in Australia’s Woodside Petroleum

Shell has announced its decision to reduce its stake in Australian company, Woodside Petroleum, which according to analysts could signal it is looking to expand into other Australian assets.

According to the market the energy major could be eyeing Santos.

Some analysts point out there is no certainty that Santos was emerging as a potential target and was the "cheapest play" at the moment for the company.

Santos is developing an LNG project in Queensland's Gladstone region, where Shell is also hoping to succeed, but its plans are not as advanced.

Analysts add that the reality is that Shell is succeeding in Australia without the domestic player (Woodside), which is now becoming increasingly irrelevant to Shell's growth ambitions.

They say in recent years Shell has increased focus on new 100 per cent-owned projects at the Prelude offshore Browse Basin and coal-seam methane to LNG onshore in Queensland.