BHP has announced its intent to create a global top 10 independent energy company through an agreement to pursue a merger of BHP’s petroleum business with Woodside
Merging BHP’s Petroleum assets with Woodside will unlock synergies and increase value and choice for BHP shareholders. The combined business will offer ongoing value during the energy transition.
A merger with Woodside will combine two great businesses that are better together.
The merged entity will have:
Significant scale, with current production of around 200 million barrels of oil equivalent per year;
A portfolio of assets, with greater diversity by product, geography, and end market; and
A continued focus on sustainable operations, carbon management and ESG leadership.
Oil and gas provide more than half of the world’s primary energy today. They remain essential to the processes and products that support everyday life. High-quality assets and projects are expected to continue to generate attractive returns for the next decade and likely beyond. We are confident this decision positions the Petroleum business to deliver the best shareholder and societal outcomes during the energy transition.
The merger will give shareholders greater choice about how to weight their exposure to the different investment and sector propositions.
The merged company would be owned 52 per cent by existing Woodside shareholders and 48 per cent by BHP shareholders.
The merger is subject to confirmatory due diligence, negotiation and execution of full form transaction documents as well as satisfaction of conditions precedent including shareholder, regulatory and other approvals. It is expected to be completed during the second quarter of the 2022 calendar year.