BHP considers sale of $15 Billion-valued petroleum business
The world’s biggest mining company says it is in talks to sell the division to Woodside Petroleum, among other options
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SYDNEY — BHP said it is in talks with Australian oil-and-natural-gas company Woodside Petroleum Ltd. on a potential deal to combine BHP’s petroleum unit with Woodside.
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BHP is also assessing other options for the division as part of a strategic review, the company said, without elaborating.
Analysts estimate the petroleum business has a value of at least $15 billion, and a deal is being explored while BHP separately hunts for a buyer for its thermal-coal mining business.
Eduard Haegel, asset president of BHP Billiton Ltd.'s Nickel West unit. BHP Group Ltd. , the world’s biggest mining company, said it is considering the sale of its petroleum business, a move that would reduce its exposure to fossil fuels amid growing … (Getty Images)
Selling the petroleum business would lead to BHP focusing on mined commodities, which include iron ore, metallurgical coal, copper, nickel and potentially potash if it proceeds with a large Canadian project. Of these commodities, 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 currently progressing, no agreement has been reached on any such transaction," the mining company said.
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Woodside, which has a market value of around $15.5 billion, separately confirmed that it was in talks with BHP. "Woodside continuously reviews the composition of its asset portfolio and opportunities to create and deliver value for shareholders," the company said.