By Tsvetana Paraskova of OilPrice.com
BP will sell 5% in the $35-billion Browse LNG project in Australia, which Australian energy giant Woodside is looking to progress, the UK-based supermajor told Reuters on Monday.
BP is selling the 5% stake, out of its total of its 44% interest, to South Korea's GS Energy.
“The dilution reflects BP’s disciplined approach to portfolio management by bringing in a committed partner,” BP said in a statement emailed to Reuters.
The Browse LNG project in Australia, proposed by Woodside Energy, entails the Browse to North West Shelf (NWS) Project to deliver natural gas from the Calliance, Torosa, and Brecknock fields to the existing Karratha Gas Plant.
The Browse project proposes to connect the natural gas fields via a 900-kilometre pipeline, connected to two floating production storage and offloading facilities, while a CCS solution has been incorporated into the offshore design.
Production capacity at Browse is planned to be 11.4 million tonnes per annum (LNG, LPG, and domestic gas) and a peak condensate production rate of 50,000 barrels per day.
The project is currently in the concept definition phase, and key activities continue in support of progress towards front-end engineering and design entry, Woodside said last month.
Woodside is the operator of the project with a 30.6% stake in the Browse Joint Venture. Before the BP-GS Energy deal, the British major held 44.33%. The sell-down will reduce BP’s interest in the joint venture to 39%.
Japan Australia LNG (MIMI Browse) Pty Ltd and PetroChina International Investment (Australia) Pty Ltd were the other shareholders in the joint venture before GS Energy joins the project with the 5% stake acquired from BP.
The Browse LNG project may have good chances to pass all pre-development and pre-construction stages in the coming years as Australian and Asian energy demand is rising, while the Middle Eastern crisis has created new energy security concerns among buyers.