BHP weighs oil and gas business sale in retreat from fossil fuels
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BHP looking to divest oil and gas business

21 Jul 2021 (Last Updated July 21st, 2021 12:25)

The miner is expected to fetch at least $15bn from the potential sale of its petroleum business.

BHP looking to divest oil and gas business
BHP is reviewing its petroleum business. Credit: Anita starzycka from Pixabay.

Australian miner BHP Group is reportedly considering exiting oil and gas operations as part of its efforts to shift away from fossil fuels and transition towards a low-carbon future.

The review of the petroleum business follows mounting investor pressure on the company to reduce its carbon footprint. It is also weighing options for trade sale, reported Bloomberg News.

BHP owns conventional assets in the US Gulf of Mexico, Australia, Trinidad and Tobago, and Algeria.

It also owns appraisal and exploration options in Mexico, Deepwater Trinidad and Tobago, the western Gulf of Mexico, eastern Canada, and Barbados.

A source familiar with the matter told the news agency that the company could fetch at least $15bn from the potential sale of its petroleum business. However, talks are still in the early stages.

Commenting on the report, BHP company spokesperson Judy Dane said: “BHP does not comment on rumour or speculation.”

The firm reported production of 102.8 million barrels of oil equivalent in the year ending 30 June.

Last year, BHP said it would divest its thermal coal mine business in Australia. However, the firm received early bids priced lower than its own valuations.

The firm, which reports the majority of its profits from its iron ore and copper units, has already divested its shale business for $10.4bn to British oil major BP in 2018.