Shell divests shares in Browse natural gas project to BP

BP has agreed to buy Shell's 27% stake in the Browse natural gas project off the northwest coast of Australia, expanding its interests in developing the country's largest untapped gas resource, even though the AUD20.5 billion (US$13.66 billion) project has been stuck on the drawing board for years. The move could improve the development prospects for the long-stalled project, which is being considered as a replacement for aging gas fields to supply the North West Shelf LNG plant. By developing the Browse joint venture, BP aims to extend the life of the plant for decades, meeting the LNG demand from Australia's biggest trading partners, including China, Japan, and South Korea, as they shift towards cleaner energy.

Shell Australia stated it agreed to sell its stake in Browse as it is no longer a strategic fit within the context of its global portfolio. BP will increase its stake in Browse to 44% if the transaction is approved, overtaking Woodside Energy Group's 30.3% stake. Woodside, BP, and Shell are all stakeholders in the North West Shelf LNG plant. The completion of the deal could help BP become the dominant stakeholder in the Browse project joint venture with great potential to unlock Australia’s future gas supply.

The agreement with Shell, subject to regulatory and stakeholder approvals, will enable BP to likely leverage its experience in developing major gas infrastructure projects, coupled with expertise in production and marketing, to optimize the performance of the Browse JV, a critical component of the North West Shelf LNG plant.