Shell is set to sell off its downstream businesses in Australia for $2.6billion (£1.5billion).
The deal with energy trader Vitol Group includes Shell’s Geelong refinery near Melbourne and its 870 retail outlets.
The agreement excludes the Dutch firm’s aviation business in the country and will not affect its upstream operations.
“Australia remains important to Shell, but we are making tough portfolio choices to improve the company’s overall competitiveness,” Shell’s chief executive Ben van Beurden said.
“Our customers will continue to benefit from the quality associated with the Shell brand and we are confident Vitol will invest in and grow the business.”
Most affected employees will be able to keep their jobs and continue working under Vitol, Shell said.
The deal is subject to regulatory approvals and is expected to be finalised later this year.
The agreement is part of Shell’s planned $15billion disposal programme for 2014-15.
Recently the firm has sold refineries in the UK, Germany, France, Norway and the Czech Republic and created downstream joint ventures with Vitol and other partners across Africa.
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