BHP Group Ltd. said it is considering the sale of its petroleum business, a move that would reduce its exposure to fossil fuels amid growing pressure from investors and governments for resources companies to cut emissions.
BHP, the world’s biggest mining company, said it is in talks with Woodside Petroleum Ltd. on a potential deal to combine BHP’s petroleum unit with the Australian oil-and-natural gas company. BHP is also assessing other options for the division as part of a strategic review, the company said, without elaborating.
Analysts estimate the petroleum business is worth at least $15 billion, and a deal is being explored while BHP separately hunts for a buyer for its thermal coal mining business.
Selling the petroleum business would lead to BHP focusing on mined commodities: iron ore, metallurgical coal, copper, nickel and potentially potash if it proceeds with a large Canadian project. Of these commodities, iron ore accounts for the largest share of BHP’s profits.
Recent Posts
Refined petroleum product export rose 12% in October
Tata Steel becomes India’s first to use biochar for greener steel production
$100 mn government investment to boost green growth in marine and offshore energy
ORIX to conduct a sea trial using biofuel in the owned vessel
Towngas, CPN sign green methanol distribution MoU
Vedanta Aluminium signs pact with GAIL for supply of natural gas
HMM introduces South Korea’s first LNG-powered vessels
NGEL inks pact with NREDCAP in Andhra for RE projects