Oil and gas giant Chevron has divested its holdings in the controversial Browse basin development off the Kimberley coast in Western Australia in an exchange of territory with Shell.
Chevron Corporation was one of several joint-venture partners in the development, through its Australian subsidiary.
Joint-venture partner Woodside Petroleum has been working to establish a multibillion-dollar gas hub at James Price Point, which has divided the community in the nearby tourist town of Broome.
Other companies involved were considering piping gas from the area further south to Karratha in the Pilbara region.
The situation has also been divisive among the traditional owners of the land, some of whom support the development of James Price Point while others vehemently oppose it.
Chevron announced on Monday it had reached an agreement with Shell Development to exchange its holdings in the Browse development for interests in the Clio and Acme fields in the Carnarvon Basin.
Chevron said in a statement it would exchange its 16.7 per cent interest in its East Browse titles and a 20 per cent interest in its West Browse titles for two blocks in the Clio and Acme fields.
Shell also paid $450 million cash for the Browse titles.
Chevron vice-chairman George Kirkland said the move fits strategically with the company's long-term plans to extend its Wheatstone area resource base and create expansion opportunities.
Chevron Asia Pacific exploration and production president Melody Meyer said Australia was a key focus area for Chevron, evidenced by its investment and development of the Gorgon and Wheatstone projects in the Pilbara region.
"Consolidating our Carnarvon Basin position furthers our progress towards becoming a leading liquefied natural and domestic gas producer in Australia and Asia-Pacific."
Chevron will retain its exploration rights in three separate Browse basin exploration leases.