BP on Monday said it agreed to sell 5% of its stake in the Browse liquefied natural gas project in Western Australia to South Korea’s GS Energy.
The sale leaves BP with a 39.33% stake in the Woodside-led project, which is expected to cost A$48.7 billion ($34.96 billion) and seeks to develop Australia’s largest untapped gas resource.
“The dilution reflects BP’s disciplined approach to portfolio management by bringing in a committed partner that complements the substantial work already undertaken to advance the Browse to North West Shelf Project,” the company said in an emailed statement.
“BP and its partners continue to see long-term value in the project, including its role in supporting energy security in Australia and the region.”
Browse is earmarked to supply gas to the North West Shelf, one of Australia’s biggest LNG export facilities, but its progress has been delayed by regulatory and commercial hurdles.
The transaction was conditional upon regulatory and joint venture approvals, BP added.
It comes after Japan’s Inpex last month said it would buy PetroChina’s 10% stake in the project.
Woodside has said it will consider exercising its pre-emption rights to match Inpex’s offer.
MST analyst Saul Kavonic said the sale to GS Energy was a “constructive sign of incremental progress” for the project.
Woodside was also more likely to be supportive of GS Energy’s involvement in Browse when compared to Inpex, he said.
“GS is seen as being likely to support Woodside’s plans for Browse and be a customer,” Kavonic said.
“Whereas Woodside will be concerned that Inpex may want to change the development of Browse to go via Inpex Ichthys infrastructure instead.”
BP became the project’s largest stakeholder after buying Shell’s stake in 2023. BP is now run by Meg O’Neill, the former CEO of Woodside.
The British energy major did not disclose the price of the sale to GS Energy, first reported by The Australian.
GS Energy declined to comment.
($1 = 1.3931 Australian dollars)
(Reporting by Christine Chen in Sydney)
