Shell sells Prelude stake

Shell's Prelude LNG floater

Stake sale: Shell has sold a combined 15% interest in its Prelude FLNG project to Kogas and CPC

Shell has sold a further 15% equity in the prestigious Prelude floating liquefied natural gas project in Australia to two large Asian LNG buyers.

Shell said it had signed separate agreements with Korea Gas Corporation for a 10% stake and with CPC of Taiwan for 5%.

Last month, Shell sold 17.5% to Japanese oil and gas company Inpex, meaning the UK supermajor now has a 67.5% interest in Prelude.

The divestment proceeds are expected later in 2012, said Shell.

“I’m particularly pleased in this quarter to welcome new strategic partners into our Prelude floating LNG venture in Australia,” said chief financial officer Simon Henry. “This partnership monetizes some of our Shell optionality at an early stage and are part of Shell’s plan for new growth in global gas.”

He added: “We feel this is a good way for Shell to de-risk the project, to monetize some of the potential value in the project, but also to maintain existing relationships and other opportunities.”

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