Shell Development has entered into a binding agreement with Chevron to acquire a stake in the Browse LNG project at James Price Point, 60km north of Broome in Western Australia.
The agreement entitles Shell to acquire Chevron’s 16.7% interest in East Browse titles, which include WA30R, WA31R, WA32R, WAR2 and TR5, as well as its 20% interest in West Browse titles WA28R, WA29R and WA275P, in exchange for its 33.3% interest in the Clio-Acme titles WA42R and WA205P.
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Shell will also pay $450m in cash to seal the transaction, on closure of which it will hold a 35% interest in West Browse and 25% interest in East Browse titles.
Shell Upstream International director Andy Brown termed the transaction a good deal as it is consistent with the company’s strategy for greater direct stake in key gas resources, as well as simplifying ownership structure of the gas fields.
"The Browse gas fields are a key LNG development opportunity for Australia," said Brown.
"We’re committed to continue working with Woodside as operator, the other JV participants and key stakeholders to secure the best possible development plan for this important resource."
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By GlobalDataThis transaction is subject to regulatory approval and is the latest in a series of recent achievements for the company’s LNG business in the Asia Pacific region.
The Browse LNG project will help distribution of gas from the Torosa, Brecknock and Calliance gas fields in the Browse Basin.
Browse gas fields are estimated to have reserves of 13.3 trillion cubic feet of dry gas and 363 million barrels of condensate as of 2011, with a field life of 40 years.
Image: Browse gas fields are expected to supply Australia’s current gas needs for 40 to 50 years.
