Woodside has confirmed it is in discussions with BHP about a potential merger involving BHP’s entire petroleum business.
The company advised that it continuously reviews the composition of its asset portfolio and opportunities to create and deliver value for shareholders.
Woodside is engaged with BHP about a possible merger through a distribution of Woodside shares to BHP shareholders for the acquisition of its petroleum business.
BHP has also confirmed that it has intimated a strategic review of its petroleum business to re-assess its position and long-term strategic fit in the BHP portfolio.
The company stated a number of options are being evaluated, with one option being a potential merger of the petroleum business with Woodside.
“We confirm that we have been in discussions with Woodside. While discussion between the parties are currently progressing, no agreement has been reached on any such transaction,” BHP reported in a media release.
BHP’s petroleum unit comprises conventional oil and gas operations, and includes exploration, development and production activities.
It has owned oil and gas assets since the 1960s, with a high-margin conventional assets located in the US Gulf of Mexico, Australia, Trinidad and Tobago, and Algeria, as well as appraisal and exploration options in Mexico, Deepwater Trinidad and Tobago, Western Gulf of Mexico, Eastern Canada and Barbados.
In addition, the company also has produced oil and gas from Bass Strait over the past 40 years. The Bass Strait operations are located between 25 and 80 kilometres off the southeastern coast of Australia.
It is also a joint venture participant in the North West Shelf project, and also operates six oil fields in Pyrenees, Western Australia.