Shell Completes Malaysian LNG Asset Sale

Anglo-Dutch major Shell has completed the sale of its 15% shareholding in Malaysia LNG Tiga to existing shareholder Sarawak State for an agreed consideration of $750mn, it said June 20.

The deal is backdated to September 1, 2017 and after adjustments for dividends Shell had received until completion, it receives about $640mn. Sarawak is an existing MLNG Tiga shareholder and with completion of this transaction it now has 25% of the 7.2mn metric tons/year plant.

The other shareholders of MLNG Tiga are Malaysian state producer Petronas (60%); Nippon Oil Finance (10%) and Mitsubishi subsidiary Diamond Gas (5%). 

Shell said the sale was consistent with its strategy to simplify its portfolio and reshape Shell into a simpler, more resilient and focused company. Following the expiry of the MLNG Satu and Dua joint venture agreements, MLNG Tiga was Shell’s only remaining interest in the 30mn mt/yr Petronas LNG complex in Bintulu. "Completion of this sale demonstrates the clear momentum behind Shell’s delivery of its global divestment programme," it said, adding that it continues "to have a strong business in Malaysia and remains committed to the country."