PRESS: BHP considering sale of petroleum business - Bloomberg

(Alliance News) - BHP Group PLC is mulling an exit from the oil & gas business as part of its ...

Alliance News 21 July, 2021 | 10:04AM
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(Alliance News) - BHP Group PLC is mulling an exit from the oil & gas business as part of its shift from fossil fuels, Bloomberg reported on Tuesday.

The Anglo-Australian miner is currently reviewing its petroleum segment and is considering its options, including a trade sale, the news agency said, citing "people familiar with the matter".

Bloomberg said that, should the BHP oil business be put up for sale, it could be worth around USD15 billion. The process is said to still be at an early stage, with no final decision having been made yet.

On Tuesday, BHP's reported a decline in production from its petroleum business in the financial year that ended June 30, down 5.5% year-on-year to 102.8 million barrels.

This was as crude oil, condensate & natural gas liquids suffered from natural field decline across the group's portfolio, while natural gas dropped due to planned shutdowns at Angostura in Trinidad & Tobago.

Looking ahead, petroleum for the current financial year ending June 2022 is expected to decline in the range of 99 million barrels to 106 million barrels, as increased production from Shenzi infill wells is set to be more than offset by natural field decline.

Also, BHP said metallurgical coal production dipped 1.2% to 40.6 million tonnes and energy coal output by 17% to 19.3 million tonnes.

Energy coal output was guided to decrease even further to between 13 million tonnes and 15 million tonnes, reflecting the planned divestment of BHP's 33% interest in the Cerrejon mine in Colombia to Glencore PLC.

Shares in BHP were up 1.8% at 2,228.50 pence on Wednesday in London, while its Johannesburg shares were 1.7% higher at ZAR448.20.

By Dayo Laniyan;

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Glencore PLC 324.50 GBX 4.01
BHP Group PLC 1,886.60 GBX 1.88

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