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SYDNEY – BHP said it is in talks with Australian oil and gas company Woodside Petroleum Ltd. on a possible agreement to combine BHP’s oil unit with Woodside.
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BHP is also evaluating other options for the division as part of a strategic review, the company said, without elaborating.
Analysts estimate the oil business to be worth at least $ 15 billion, and a deal is under consideration as BHP separately seeks a buyer for its thermal coal mining business.
Eduard Haegel, president of the assets of the Nickel West unit of BHP Billiton Ltd. BHP Group Ltd., the world’s largest mining company, said it was considering selling its oil business, a move that would reduce its exposure to fossil fuels amid growing growth (Getty Images)
Selling the oil business would cause BHP to focus on mined raw materials including iron ore, metallurgical coal, copper, nickel and potentially potash if it proceeds with a major Canadian project. Of these raw materials, iron ore accounts for the largest share of BHP’s profits.
BHP said a possible deal with Woodside would include a distribution of Woodside shares to BHP shareholders. “While discussions between the parties are progressing now, no agreement has been reached on such a transaction,” the mining company said.
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Woodside, who has a market value of around $ 15.5 billion, has separately confirmed that he is in talks with BHP. “Woodside is continually reviewing the composition of its asset portfolio and the opportunities for creating and creating shareholder value,” the company said.
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