Shell sells Australian offshore natural gas interests to bp

(Bloomberg) – Shell Australia is selling bp Plc its interests in the carbon-intensive Browse offshore natural gas project, one of Australia’s largest untapped gas fields.

“The Browse asset is no longer a strategic fit in the context of Shell’s global portfolio,” Shell said in a statement Saturday, without elaborating on the size of the deal. The sale is subject to regulatory approvals.

bp will purchase Shell’s 27% stake, according to a BP spokesperson.

“bp believes development of the Browse gas resources could make a significant contribution to energy security in Australia and to the Asia Pacific region,” the spokesperson said.

The Browse development, which would emit at least 70 million tons of carbon dioxide equivalent over 30 years of operations, has been opposed by climate action campaigners because it will generate more pollution in gas production than other key Australian projects.

The offshore natural gas project is operated by Woodside Energy Group Ltd. in partnership with Shell, China National Petroleum Corp., bp and Japan Australia LNG Pty Ltd, according to Shell’s official website.