BP sells 5% stake in Australian Browse LNG project to South Korea's GS Energy
BP's Strategic Stake Sale in the Browse LNG Project
SYDNEY, June 1 (Reuters) - 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.
Project Overview and Financial Details
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.
BP's Portfolio Management Strategy
"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."
Project Development and Industry Context
Supply Plans and Regulatory Delays
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 approvals.
Recent Stake Transactions
BP's stake sale 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.
BP's Position and Leadership
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.
Additional Information
Undisclosed Sale Price
The British energy major did not disclose the price of the sale to GS Energy.
Currency Exchange Rate
($1 = 1.3931 Australian dollars)
Reporting Credits
(Reporting by Christine Chen in Sydney; Editing by Jacqueline Wong and Thomas Derpinghaus)
