2023-05-01 07:02:06 ET
Shell ( NYSE: SHEL ) said on Saturday it agreed to sell its 27% stake in the long-delayed Browse natural gas project off Australia's northwest coast to BP ( NYSE: BP ) for an undisclosed sum.
Browse has the potential to produce 11.4M metric tons/year of liquefied natural gas, liquefied petroleum gas and domestic gas.
If the deal is completed, BP's ( BP ) stake in Browse - Australia's largest undeveloped gas resource - would increase to 44%, overtaking operator Woodside Energy's ( WDS ) 30.6% share.
The ~$20B project has been stuck on the drawing board for years but is now being considered to replace aging gas fields to supply the North West Shelf LNG plant.
Browse has been opposed by climate activists because it would generate more pollution in gas production than other key projects in Australia.
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Shell to sell out of Australia's Browse gas stake in BP deal