BP sells additional five percent Browse Project stake to Japan’s Osaka Gas in second 2026 divestment
BP has agreed to sell a five percent stake in Australia’s Browse Project to Japan’s Osaka Gas Co Ltd — the second time this year the British energy major has trimmed its position in the offshore Western Australia gas development. The move follows a similar five percent transfer to South Korea’s GS Energy Corp, agreed to in June 2026.
BP agrees to transfer five percent Browse stake to Osaka Gas
BP PLC is selling a five percent interest in the Browse Project to Osaka Gas Co Ltd. The Japanese utility is making the acquisition through a newly established subsidiary, Osaka Gas Browse Pty Ltd (OGB). The target assets are the Brecknock, Calliance, and Torosa gas fields, sitting offshore Western Australia in the Browse Basin.
The deal isn’t final yet. Regulatory approvals are still required, and BP must obtain consent from its co-venturers in the Browse Joint Venture. Until those conditions are satisfied, the transaction stays pending.
Front-end engineering and design — commonly known as FEED — remains the next major milestone, with environmental approvals still being pursued in parallel.
Why BP is reducing its Browse Project position
BP describes the sale as part of what it calls a “disciplined approach to portfolio management.” The company added that the farm-down “brings in a committed partner that complements the substantial work already undertaken to advance the Browse to North West Shelf Project.”
This isn’t BP’s first Browse sell-down in 2026. On June 2, BP agreed to transfer another five percent stake to South Korea’s GS Energy Corp — making the Osaka Gas deal the second partial divestment within the same calendar year.
The back-to-back sales follow a recognizable logic. Both GS Energy and Osaka Gas are major East Asian LNG buyers, and bringing them in as equity partners ties their procurement interests directly to project development. Partners who plan to offtake the gas have a built-in reason to push the project forward rather than let it stall.
Once both deals close, BP will hold a 34.33 percent interest in Browse through BP Developments Australia Pty Ltd — still substantial, but noticeably smaller than before.
Osaka Gas expects roughly 550,000 metric tons of LNG per year from the project
Osaka Gas was specific about what it’s getting. The company stated that OGB is expected to acquire approximately 550,000 metric tons per year of LNG from Browse once production starts.
The deal also covers associated LPG and domestic gas, giving Osaka Gas exposure to multiple output streams from the same upstream asset — not just LNG. Osaka Gas framed the acquisition around energy security, saying the combination of domestic gas supply for the Australian market alongside LNG exports “contributes to the energy security in both Australia and Japan.” That framing reflects a broader concern among Japanese utilities about long-term supply reliability, particularly as older LNG contracts approach expiration.
The domestic gas piece deserves separate attention. Browse gas directed to Australia’s internal market creates a second revenue stream alongside LNG exports, which could improve the project’s overall economics and reduce its dependence on a single pricing mechanism.
Shifting ownership structure and project development status
Browse’s ownership picture has been shifting on multiple fronts in 2026 — not only through BP’s sell-downs. Earlier this year, operator Woodside Energy Group exercised its co-venturer right to pre-empt a planned sale by China National Petroleum Corp of a 10.67 percent Browse interest to Japan’s INPEX Corp.
By stepping in to block that transaction, Woodside absorbed CNPC’s stake. Woodside’s share — held through Woodside Browse Pty Ltd — will consequently rise to 41.27 percent once the relevant transactions close. Japan Australia LNG (MIMI Browse) Pty Ltd retains a 14.4 percent share.
Woodside said in June that its combined interest in the upstream Browse resource and the North West Shelf onshore infrastructure “provides the basis for an integrated development concept” it expects could deliver strong returns across the value chain. Front-end engineering and design — commonly known as FEED — remains the next major milestone, with environmental approvals still being pursued in parallel.
The development plan is large. It involves building a pipeline of roughly 560 miles connecting the Browse Basin fields to the existing Karratha Gas Plant infrastructure onshore, supported by two floating production, storage, and offloading facilities, known as FPSOs.
550,000 metric tons of LNG every year
BP’s agreement to sell a five percent Browse stake to Osaka Gas is the second partial divestment the company has made in the project in 2026, following a similar deal with GS Energy in June. Once both sales close, BP will hold 34.33 percent through BP Developments Australia Pty Ltd, while Woodside’s share rises to 41.27 percent after pre-empting CNPC’s planned sale to INPEX.
Osaka Gas expects to receive approximately 550,000 metric tons per year of LNG through its subsidiary OGB, along with associated LPG and domestic gas. Regulatory approvals and co-venturer consent are still required before the transaction can close.
Browse is advancing toward FEED while pursuing outstanding environmental approvals. The development plan centers on a pipeline linking the Browse Basin fields to Karratha, supported by two FPSO facilities.
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