BHP weighs sale of oil and gas assets in review of business options

SourceFinancial Times
SectorOil & Gas

BHP is examining options for its oil and gas assets including a sale, as the miner looks to focus on commodities that will be needed in the shift to a low-carbon economy, according to people familiar with the matter

The decision to review the future of the petroleum business comes as big miners face pressure to reduce their exposure to fossil fuels and align their businesses with the goals of the Paris climate agreement.

BHP’s petroleum unit sets the company apart from its pure mining peers. But ageing fields and the sale of its lossmaking US shale business in 2018 has seen its production fall sharply from 235m barrels in 2013 to around 103m in the year to June, or 280,000 barrels per day.

While BHP, the UK’s biggest listed company, does have options to increase output at the Scarborough gasfield off Australia as well as in the Gulf of Mexico and Trinidad and Tobago, that would require investment.

Mike Henry, BHP chief executive, more...