Shell sells stake in Australian Browse gas project to BP

Shell Australia signed an agreement with BP to sell its 27% stake in the Browse gas project in Western Australia, the company announced on April 29. It did not disclose the value of the deal. 

“Browse remains an important Australian resource which if developed will provide much-needed energy to customers as the energy market transitions towards lower carbon energy,” it said.

“Shell regularly assesses its portfolio to inform capital allocation and maximise returns and performance however, the Browse asset is no longer a strategic fit in the context of Shell’s global portfolio,” the company added.

BP’s interest in the project will increase to 44% if the deal goes through. The project is operated by Woodside which has a 30% stake. Other shareholders are Japan Australia LNG and PetroChina.

According to Woodside, Browse is one of Australia’s largest untapped gas resources. The estimated A$20.5bn ($13.78bn) project has been delayed due to demand uncertainty and negotiations over a processing agreement.

Woodside CEO Meg O'Neill has played down concerns over the status of the Browse project.