BP to buy Shell's stake in Browse gas project
Monday, 1 May 2023
SYDNEY, Apr 30 (Reuters): BP has agreed to buy rival giant Shell's 27 per cent stake in the Browse joint venture, expanding its holding in Australia's largest untapped gas resource in a move that could improve the development prospects for the long-stalled project.
The Browse project, estimated to cost $20.5 billion, has been stuck on the drawing board for years but is now being considered as a replacement for ageing gas fields to supply the North West Shelf LNG (liquefied natural gas) plant.
Development of Browse would extend the life of the North West Shelf LNG plant for decades, helping to meet demand for LNG from Australia's biggest trading partners.
Shell Australia said in a statement on Saturday it had agreed to sell its stake in Browse as the "asset is no longer a strategic fit in the context of Shell's global portfolio".
If the deal goes ahead, BP will increase its stake in Browse to 44 per cent, overtaking operator Woodside Energy Group's 30.3 per cent stake.