Woodside set to acquire petroleum assets from BHP – report

Quantum Commodity Intelligence – Australia's Woodside Petroleum is closing in on a deal to acquire oil and gas assets from mining giant BHP, according to a report in The Australian.

The latest news follows reports last week BHP was looking to exit the oil and gas business.

According to The Australian report, Woodside will be looking to acquire the global portfolio of assets BHP holds in oil and gas.

Previously, it was reported Woodside was only looking to acquire Australian petroleum assets from BHP, but the potential divestment from the oil and gas business comes as mining companies face intense pressure to meet environmental targets.

Australia's mining industry accounts for around 10% of country's oil consumption, burning through around 5 billion litres of diesel per year.

The report said the deal could be announced next month with both companies set to reveal latest financial results on August 17.

BHP's oil production has more than halved since 2013 and currently produces around 280,000 barrels per day.

BHP is operator of the Pyrenees oil fields, which yield in-demand low-sulfur crude oil, and also has stakes in North West Shelf, Macedon and Bass Straits.

The mining giant has already disposed of most of its international oil and gas assets, but still has an interest in the US Gulf.