Shell Australia has signed an agreement with BP for the sale of Shell’s 27 per cent interest in the Browse Project subject to regulatory approvals.

If approved, BP will increase its stake in Browse to 44 per cent, overtaking operator Woodside Energy Group’s 30.6 per cent stake.

The Browse joint venture (BJV) is proposing to develop the Brecknock, Calliance and Torosa fields located approximately 425 kilometres north of Broome in the offshore Browse Basin, Western Australia.

In September 2018, the BJV selected the Browse to North West Shelf (NWS) Project development concept to progress into the concept definition phase. The proposed development concept includes: two floating production storage and offloading (FPSO) facilities delivering 11.4 Mtpa of LNG/LPG and domestic gas; and an approximately 900 km pipeline to existing NWS Project infrastructure.

The BJV is evaluating a range of options to manage greenhouse gas emissions and is progressing a feasibility assessment for a carbon capture and storage solution and opportunities to improve energy efficiency.

Shell said in a statement that 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.

“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 said.

The BJV’s participants are currently Woodside Browse Pty Ltd (30.60%), Shell Australia Pty Ltd (27%), BP Developments Australia Pty Ltd (17.33%), Japan Australia LNG (MIMI Browse) Pty Ltd (14.40%), PetroChina International Investment (Australia) Pty Ltd (10.67%).