Chevron is selling its minority stake in the largest liquefied natural gas project in Australia.
The California-based energy major told Reuters this week it has decided to market its 16.7 percent stake in the North West Shelf project in western Australia after receiving several unsolicited offers. The company didn't respond to a request for comment.
Chevron is selling its stake in the 35-year-old project, which is nearing the end of its natural gas production and is shifting toward becoming an LNG processing facility, Reuters reported. The project is a joint venture between six equal partners BHP, BP, Chevron, Japan Australia LNG (MIMI), and Shell.
"Chevron ... is unlikely to be able to monetize any of its gas through the facility in the near-term,” David Low, a senior energy analyst at Wood Mackenzie, said in a statement. “We see this as part of the reason why its stake in the NWS is up for sale.”
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Chevron’s stake could be sold for as much as $4 billion, Reuters reported, citing an anonymous source. Chevron told the wire service it remains committed to its Gorgon and Wheatstone LNG projects in western Australia.
Wood Mackenzie, a U.K.-based energy research firm, said Chevron has a few likely suitors, but said it sees Woodside -- an operator and partner in the North West Shelf -- as the most likely buyer because it is well-positioned financially and has already announced it is looking to acquire projects in Australia.
"We still see Australia as a strategically important part of Chevron's portfolio – it is in fact one of its most important countries in terms of remaining upstream value,” Low said. “Chevron will continue to focus on squeezing maximum value from its large LNG projects, Gorgon and Wheatstone, without the distractions of the NWS."
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Chevron selling stake in Australian LNG project - Houston Chronicle
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