BP has agreed to sell a 5% stake in the Browse liquefied natural gas (LNG) project in Western Australia to South Korea’s GS Energy, the company announced on Monday.
The transaction reduces BP’s holding in the project to 39.33%, while bringing in a strategic partner as development efforts continue on one of Australia’s largest untapped gas resources.
The Browse project, led by Woodside Energy, is estimated to cost A$48.7 billion ($34.96 billion) and is expected to supply gas to the North West Shelf LNG facility.
BP said the stake dilution reflects its disciplined portfolio management strategy and supports the project’s long-term development objectives.
The company added that it continues to see significant value in Browse, citing its potential contribution to energy security in Australia and the wider Asia-Pacific region.
Development of the project has faced delays due to ongoing regulatory approval processes.
The sale follows recent consolidation among project partners, including Japanese energy firm Inpex’s agreement last month to acquire PetroChina’s 10% interest in Browse.
Woodside has indicated it is evaluating whether to exercise its pre-emption rights and match Inpex’s offer.
BP became the largest stakeholder in Browse after acquiring Shell’s interest in 2023, strengthening its position in the Australian LNG sector.
The company is currently led by Meg O’Neill, the former chief executive of Woodside, underscoring BP’s deep ties to the project and the region’s energy industry.