BP plans to up stake in Australia’s Browse gasfield

Australia

PERTH, May 1, 2023 – BP has agreed to acquire Shell’s stake in Australia’s largest untapped gasfield, Reuters reported on Saturday.

Under the agreement, BP will take on Shell’s 27% shares in the offshore Browse field, upping its total stake to 44%.

Development of the Browse concession is seen as a possible replacement for ageing fields supplying the North West Shelf LNG facility and is estimated to cost USD 20.5 million.

The Browse development located off the coast of the Kimberly region in Western Australia encompasses the Calliance, Brecknock and Torosa offshore fields, which are estimated to contain 566 bcm (20 tcf) of gas.

Given the fields contain up to 12% carbon dioxide, development of the project is expected to include a carbon capture, storage and reinjection scheme.

The Browse joint venture is operated by Woodside Energy with a 30.3% stake.

Cost of the transaction was not revealed, though 2022 estimates put the value of Shell’s shares in the project at around USD 350 million.

The deal is subject to regulatory approvals.

BP, Shell and Woodside Energy are all shareholders of the North West Shelf LNG plant.