Shell pursuing US$1b exit from Indonesia LNG project

Coal price

May 03, 2019 (Euclid Infotech Ltd via COMTEX) — Royal Dutch Shell is moving to sell its stake in Indonesia’s US$15 billion Abadi liquefied natural gas (LNG) project, industry and banking sources said, following on from an asset disposal programme that has raised more than US$30 billion.

Shell, the world’s largest buyer and seller of LNG, is raising cash to help pay for its US$54 billion purchase of BG Group in 2015 and hopes to raise around US$1 billion from the sale of its 35 per cent stake in the project, the sources said.

Shell’s decision to sell out of the Abadi project in the Masela block, operated by Japanese oil and gas firm Inpex Corp which holds the remaining stake, highlights the difficulty Southeast Asia’s largest economy has in attracting energy investment.

Shell, Inpex and an official with Indonesia’s Energy and Mineral Resources all declined to comment.