Shell Gas Holdings (Malaysia) Limited, a subsidiary of Royal Dutch Shell plc, announced today that it has completed the sale of its 15% shareholding in Malaysia LNG Tiga Sdn Bhd (MLNG Tiga) to the Sarawak State Financial Secretary (SFS) for an agreed consideration of $750 million.
The transaction has an economic date of 1 September 2017 and the net final consideration paid to Shell after adjustments for dividends the company received up to completion is approximately $640 million. SFS is an existing MLNG Tiga shareholder and with completion of this transaction, increased its shareholding in MLNG Tiga to 25%.
The other shareholders of MLNG Tiga are PETRONAS with 60% equity, Nippon Oil Finance (Netherlands) B.V. with 10% equity, and Diamond Gas (Netherlands) B.V., a Mitsubishi Corporation subsidiary with 5% equity. Malaysia LNG Sdn Bhd, a PETRONAS subsidiary, operates MLNG Tiga as part of the larger PETRONAS LNG Complex in Bintulu.
This sale is consistent with Shell’s 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 PETRONAS LNG complex. Completion of this sale demonstrates the clear momentum behind Shell’s delivery of its global divestment programme.
Shell continues to have a strong business in Malaysia and remains committed to the country.