The company is selling the stake to Kuwait Foreign Petroleum Exploration ((KUFPEC), for a cash consideration of around $1,135m, which is subject to closing.
Shell said that the agreement with KUFPEC will have no impact on existing commercial agreements.
Royal Dutch Shell CEO Ben van Beurden said the company will remain as a major player in Australia’s energy industry.
"However, we are refocusing our investment to where we can add the most value with Shell’s capital and technology," Beurden added.
"We are making hard choices in our world-wide portfolio to improve Shell’s capital efficiency."
