Royal Dutch Shell’s subsidiary, Shell Energy Holdings Australia Ltd says it will sell its stake in oil and gas producer Woodside Petroleum Ltd
(ASX:WPL) for $US3.3 billion.
The sale is for almost a third of Shell’s interest, which will move from 34.37 per cent of Woodside’s issued capital to 24.27 per cent.
Shell will sell 78.34 million shares in Woodside, representing around 10 per cent of the company, priced at $42.23 per share.
Shell says with its recent portfolio progress in Australia and worldwide push to simplify the company and improve capital efficiency, Shell will increasingly focus its investment in the country through direct interests in assets and joint ventures, rather than indirect stakes.
Media reports have suggested that the sale was snatched up by institutional investors and not BHP Billiton Ltd (ASX:BHP), with speculation Shell has decided to divest its interest because of the belief that Australian regulators would never give approval for the Dutch company to acquire all of Woodside. Woodside Petroleum improved its net profit to $1.06 billion in the year to 30 June 2010.
