Shell to remain in Australian exploration and production sphere

Shell to remain in Australian exploration and production sphere

Royal Dutch Shell (LSE:RDSA) will continue developing its exploration and production portfolio in Australia, despite moving away from its aviation sector.

The multi-focused energy corporation sold its Australian aviation subsidiary to independent Viva Energy Australia for US$250 million, as it looks to restructure its portfolio.

Shell will keep its brand name visible in the aviation refuelling sector while Viva assumes the licensee responsibilities of its fuels.

“Shell’s upstream operations in Australia, which include exploration, production and gas commercialisation, are not impacted by this announcement,” said the company statement.

The Anglo-Dutch oil major currently operates in the Australian natural gas market and holds a presence in the Browse Basin off the coast of Western Australia.

Shell is in the process of constructing the world’s first floating liquefied natural gas (FLNG) project in the basin which is the largest vessel of its kind.

Prelude FLNG has a production capacity of at least 5.3 million tonnes per annum (mtpa) of liquids, including 3.6 mtpa of LNG, 1.3 mtpa of condensate and 0.4 mtpa of liquefied petroleum gas.

@RGNonline