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Shell to sell its interests in the Laminaria and Corallina oil fields

Posted: 12 March 2005

Shell Development (Australia) reported it is divesting its non-operated stakes in the Laminaria and Corallina oil fields, associated infrastructure (Northern Endeavour Floating Production Offtake Storage) and contiguous exploration acreage (AC/P8).

The properties are being sold to Woodside Energy Ltd and Paladin Oil & Gas (Australia) Pty Ltd, under separate Sales Purchase Agreements, subject to the consent of the Australian authorities.

The combined sales price is US$140.2 million as at 1 July 2004 and is subject to adjustments for working capital and cash flow movements between the effective date and completion.

Woodside Energy Limited
* Corallina (16.67 per cent)
* Laminaria (14.975 per cent)

Paladin Oil & Gas (Australia) Pty Ltd
* Corallina (8.33 per cent)
* Laminaria (7.4875 per cent)
* AC/P8 (15 per cent)

The sale of Shell's interests in the Laminaria and Corallina oil fields is in line with of the Group's active portfolio management strategy, expected to deliver some $12 to $15 billion from sales and swaps over the period 2004 to 2006.

"Australia is extremely important to Shell and the focus of Shell's upstream business in Australia is on the development of the large gas resources in which Shell has an interest. Although it is a quality asset, Laminaria is a declining oil field and is therefore not a strong fit with this strategic direction either on gas or on our growth aspirations," said Chris Gunner, Chief Operating Officer for Shell Development Australia.

"Shell remains committed to Australia and will continue to maintain significant investment both upstream and downstream. We hold an interest in about 20 per cent of approximately 136 trillion cubic feet of Australia's gas resources and Australia is a key growth region in LNG production."

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