BHP Group is said to be considering exiting oil and gas for good, which includes a multibillion-dollar sale of its petroleum business, according to a Bloomberg News report on July 20.
Headquartered in Melbourne, BHP is an Anglo-Australian miner that has owned oil and gas assets since the 1960s. The company’s petroleum business, valued by RBC analysts to be worth $14.3 billion, includes conventional oil and gas operations centered in the U.S. Gulf of Mexico, Australia, Trinidad and Tobago, and Algeria. The company also has exploration, development and production activities in Mexico, deepwater Trinidad and Tobago, Western Gulf of Mexico, Eastern Canada and Barbados.
“With rising ESG pressures facing the industry, but also as this business potentially enters into a re-investment phase, we can see why management might be contemplating an exit,” the RBC analysts wrote in a note.
UPDATE:
Woodside Shares Fall on Speculation It Is Eyeing BHP’s Oil and Gas Assets
BHP began its retreat from oil and gas in 2018 with the sale of its U.S. shale assets in two separate agreements. The largest of the transactions was the $10.5 billion cash purchase by BP Plc of BHP’s positions in the Permian Basin, Eagle Ford Shale and Haynesville Shale.
The review of BHP’s petroleum business reported by Bloomberg on July 20 is part of the company’s scenario planning, according to two banking sources who declined to be named as the talks are private.
The report added that the deliberations were still at an early stage and no final decision has been made.
Reuters contributed to this article.
Recommended Reading
E&P Highlights: March 15, 2024
2024-03-15 - Here’s a roundup of the latest E&P headlines, including a new discovery and offshore contract awards.
Deepwater Roundup 2024: Offshore Europe, Middle East
2024-04-16 - Part three of Hart Energy’s 2024 Deepwater Roundup takes a look at Europe and the Middle East. Aphrodite, Cyprus’ first offshore project looks to come online in 2027 and Phase 2 of TPAO-operated Sakarya Field looks to come onstream the following year.
E&P Highlights: March 4, 2024
2024-03-04 - Here’s a roundup of the latest E&P headlines, including a reserves update and new contract awards.
Valaris Updates Fleet Status
2024-02-19 - The backlog of these contracts and extensions is valued at $1.2 billion.
Rystad: More Deepwater Wells to be Drilled in 2024
2024-02-29 - Upstream majors dive into deeper and frontier waters while exploration budgets for 2024 remain flat.