According to people familiar with the matter, BHP BillitonThe group is considering pulling out of the oil and gas business, a multibillion-dollar deal that will accelerate the company's withdrawal from the fossil fuel industry.
The world's largest mining company is reviewing its oil business and considering options, including a sale, according to people familiar with the matter. People familiar with the matter spoke on condition of anonymity because the negotiations were not made public. The business is expected to earn more than $2 billion this year and could be valued at $15 billion or more, one of the people familiar with the matter said.
BHP's oil and gas assets make it an outlier among the world's big mining companies. The company has long said the business is one of the pillars of its strategy, but is under pressure from investors such as Elliott Investment Management to exit. At the same time, unlike other big oil competitors, BHP does not rely on profits from its energy business, compared with much higher profits in its iron ore and copper businesses.
The discussion is still at an early stage and no final decision has been made, according to people familiar with the matter. The company hopes to pull out of the business with a higher price and hopes to repeat the successful $10.4 billion sale of its shale gas business to BP Plc in 2018. Brent crude futures are up about 60% over the past year as the blockade ends.
A spokesman for BHP declined to comment.