Report says BHP Mulls Oil & Gas Exit

Tuesday, July 20, 2021

Global miner BHP Group is considering getting out of oil and gas in a multibillion-dollar exit as it looks to speed up its retreat from fossil fuels, Bloomberg News reported on Tuesday, citing people familiar with the matter.

The world's biggest miner is reviewing its petroleum business and considering options including a trade sale, the report said, adding that the deliberations were still at an early stage and no final decision has been made.

"BHP does not comment on rumor or speculation," company spokesperson Judy Dane said.

Mining companies around the world are under growing shareholder pressure to reduce their carbon footprint and take stringent climate actions to cut emissions, as calls for a shift towards cleaner forms of energy accelerate.

Analysts at RBC said they valued BHP's oil and gas portfolio focused on the U.S. Gulf of Mexico, eastern Canada and Australia at $14.3 billion.

"With rising ESG (environmental, social and governance)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," they said in a note.
Considering options for the oil and gas portfolio is part of BHP's scenario planning, said two banking sources, who declined to be named as the talks are private.

BHP, the bulk of whose earnings come from its iron ore and copper units, sold its shale business to British oil major BP Plc for $10.4 billion in 2018. 

(Reuters reporting by Arundhati Dutta in Bengaluru; Additional reporting by Clara Denina; Editing by Anil D'Silva and Aditya Soni)


Categories: People & Company News People Offshore Energy Oil & Gas

Related Stories

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

Fire Contained at Vietnamese Oil Platform Undergoing Decommissioning (Video)

ABS Greenlights SHI’s Multi-Purpose Deepwater LNG Floating Unit

Turkey Discovers New Black Sea Gas Reserve

Indonesia's Medco Starts Production at Natuna Sea Fields

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Keel Laying for Wind Flyer Trimaran Crew Boat

Argentina YPF to Shed Offshore Exploration Projects

SLB Names Raman CSO, CMO

Current News

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Valeura Concludes Eight-Well Drilling Campaign in Gulf of Thailand

Three Dead in Chevron's Angolan Oil Patform Fire

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com