BHP Group is reviewing its petroleum business to accelerate its retreat from fossil fuels. Sources familiar with the matter said the company is considering options to exit the oil & gas sector including a trade sale. They estimated that BHP’s petroleum business would generate $2 billion this year and could be worth $15 billion or more. The move came amid growing pressure from investors including Elliott Investment Management to exit the fossil fuel industry.
BHP has said that its oil and gas operations were one of its strategic pillars. However, it does not rely on profits from the oil and gas business. The company’s profits largely come from its copper and iron ore units. The sources noted that the discussions were still at early stages, and the company had not made any final decision. They said that BHP wanted to sell them at a good price.
BHP entered the oil and gas industry in the 1960s. The world’s largest has assets off the coast of Australia and in the Gulf of Mexico. It pumped 102.8 million boepd in the year ended June 30. Under growing ESG pressure, BHP is also seeking buyers for its thermal coal assets in Australia. However, early bids for the assets have been lower than the company’s initial valuation.
