BHP Mulls Oz Bass Strait Project Stake Sale

Anglo-Australian multinational BHP plans to sell its stake in Bass Strait oil and gas project offshore Victoria, it said on August 18 in its full year results report.

“We continue to optimise our petroleum portfolio through the exit of later life assets, including an intended exit from Bass Strait, and farm-downs of the longer dated options,” the company said. “In addition, we will explore potential targeted counter-cyclical acquisitions in producing or near producing high quality assets, with each opportunity tested against our strict capital allocation framework.” BHP owns 50% stake in the project while ExxonMobil owns the remaining 50%. The US major has also put its stake up for sale.

Meanwhile, BHP said it has cut its oil and gas exploration expenditure for the 12 months to June 30, 2021 (FY2021). It has planned to spend approximately $450mn on exploration and appraisal programme for FY2021. Oil and gas expenditure for FY2020 was $564mn, of which $394mn was expensed.

The FY2021 exploration and appraisal programme includes the Broadside exploration well in Trinidad and Tobago Southern licences, preparation for exploration drilling in Green Canyon blocks in the US Gulf of Mexico and appraisal planning in Trinidad and Tobago Northern gas discovery.

In FY2021, BHP expects oil and gas production to be in the 95 – 102mn boe range. In FY2020, BHP’s production was 109mn boe, down 10% on FY2019.

On Scarborough gas development, BHP said its final investment decision is expected to be aligned with Woodside’s. Earlier this year, Woodside announced the delay of the Scarborough development to the second half of the 2021 calendar year.