Royal Dutch Shell sells 10-per cent stake in Australia’s Woodside for $3.3 billion

Global oil and gas giant Royal Dutch Shell Plc (Shell) yesterday agreed to offload its 10-per cent stake in Australia's second-largest energy company Woodside Petroleum Limited (Woodside) to investors for approximately $3.3 billion, pursuing its global strategy to simplify the company and to improve its capital efficiency.

Further to the transaction, Shell's holding in Woodside would reduce from the current level of around 34 per cent to 24 per cent.

Shell's subsidiary, Shell Energy Holdings Australia Limited (SEHAL), has entered into an agreement with underwriter UBS AG, for the sale of around 78 million shares in Woodside at a price of A$42.23 per share. This represents approximately 29 percent of Shell's interest in the Australian energy company, Shell said in a statement.

SEHAL has also committed to retain its remaining shares in Woodside for at least one year, with limited exceptions, including sale to a strategic third party of interest greater than 3 per cent in Woodside.

Shell CEO, Peter Voser, said, ''Our stake in Woodside has been an important part of Shell's portfolio in Australia for many years. We are looking forward to working with Woodside on important new growth projects where we are partners.''

Voser stated that Shell would be a leading investor in Australia. However, the company would invest in Australian assets directly or through joint ventures, rather than indirect stakes. Its remaining interest in Woodside will be managed in the context of the company's global portfolio.