As part of a drive to improve its return on investment, Shell has agreed to sell stakes in a gas project in Western Australia to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for $1.14 billion.

The deal, which includes the oil and petrochemicals group's 8% stake in the Wheatstone and nearby Iago gas fields and its 6.4% stake in the related Wheatstone liquefied natural gas (LNG) project, raises to 13.4% KUFPEC's holding in the Chevron-led LNG project expected to cost $29 million and start up in 2016.

Chevron has a 64.14% in Wheatstone, due on stream in 2016. The other stakeholders are Apache Corp with 13%, Tokyo Electric Power Co with 8% and Kyushu Electric Power Co with 1.46%.

Shell CEO Ben van Beurden, said the group is refocusing its investment on projects that can add the most value with Shell's capital and technology. However, he said Shell will remain a major player in Australia's energy industry.

KUFPEC is focused on using OPEC member Kuwait's oil wealth to diversify into energy projects abroad. Wheatstone, one of several major Australian LNG projects due on stream in the next few years, is about 25% complete. Some 80% of future production is earmarked for Asia.

Shell recently issued a "significant" profit warning citing across-the-board problems. The group has already canceled plans to build a gas-to-liquids plant in the U.S.