BHP, the world’s biggest miner, has confirmed it is in talks to sell its oil business in a move that would mark its exit from the fossil fuels industry.
London and Sidney-listed BHP Group said it is in discussions to merge its oil and gas assets with those of Australia’s Woodside Petroleum, potentially in exchange for shares.
The move would mark the latest step in the mining giant’s shift away from fossil fuels, having already sold some coal assets, to focus solely on its other mining operations.
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It comes as BHP and other large mining companies have been facing calls from shareholders and environmental pressure groups to reduce their exposure to fossil fuels.
BHP recently sold its stake in a joint venture which operated two coking coal mines, while it also offloaded its shale oil and gas fields in the US to BP for $10.5billion in 2018.
Chief executive Mike Henry has previously said the group will expand further into commodities which can be used for low-carbon power generation and look further towards higher quality raw materials.
‘While discussions between the parties are currently progressing, no agreement has been reached on any such transaction,’ BHP said today, adding that it was evaluating a number of options.
Source: This is money
