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.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.