Shell Offloads Australian Shelf Stake for $1.45 Billion as Buyback and LNG Deals Roll On

Shell has agreed to sell its 16.67% interest in Australia's North-West Shelf project to subsidiaries of XRG, the Abu Dhabi National Oil Company unit, for a base consideration of US$1.45 billion before customary adjustments. An additional payment tied to the achievement of certain milestones sits on top of that headline figure, the company said Tuesday.

Shell Australia holds the stake as a non-operator, and the transaction is expected to close in 2027, subject to the necessary approvals. For XRG, picking up the Shell interest would mark its first acquisition of an asset in Australia, according to Reuters.

The disposal lands alongside a busy stretch of commercial activity. Shell Global LNG Limited signed a binding five-year liquefied natural gas supply agreement with METLEN on Monday, covering six cargoes a year from 2027 — roughly 0.6 billion cubic metres of gas annually. The Greek deal follows Venture Global's November 1 announcement that Shell had become the first customer to receive LNG under a long-term sales contract from the Plaquemines export facility, with the delivery coming after the plant entered commercial operation.

Should investors sell immediately? Or is it worth buying Shell?

Oil Price Slide Weighs on the Stock

The equity has had a rougher time of it. Shell shares shed 8.5% over seven days, pressured by a sharp retreat in crude prices as the prospect of a de-escalation in the Iran conflict raised hopes of looser supply conditions. Reuters reported the looming weekly slump in oil after the US election results fuelled expectations of a thaw. Crude had already fallen 8% on Wednesday, with hopes for a wind-down in tensions after the US midterms and expectations of rising supply at the centre of the move. The oil price decline was cited as the concrete trigger for Shell's recent share-price weakness.

The picture in the Middle East remained tense, however. Continued attacks in the region lent the oil market some support yesterday, according to Reuters — leaving expectations of de-escalation facing off against actual strikes on the ground.

Earnings and Returns Underpin the Story

Operationally, Shell reported adjusted earnings of $10.8 billion for the third quarter of 2026 on October 29, citing a strong operating performance, higher commodity prices and record refining margins. Cash flow from operations reached $21.0 billion, and the company declared an interim dividend of $0.3906 per share.

Shareholder returns are running in parallel. Shell announced a $5.0 billion share buyback roughly two weeks ago, with all repurchased shares to be cancelled. On Thursday the company bought back around 1.9 million shares for cancellation under the programme. Subject to market conditions, Shell intends to complete the buyback before publishing its fourth-quarter 2026 results.

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