By Robb M. Stewart
MELBOURNE--BHP Billiton (BHP) is considering exiting its U.K.
petroleum operations, including crude oil and natural gas fields
and a processing plant, as part of ongoing efforts to tighten the
focus of its portfolio of mining and energy assets.
The Anglo-Australian company has launched a strategic review of
the business and is exploring options, include the possible sale of
the assets, a spokeswoman said Wednesday in an emailed reply to
questions. However, she said the process was at a very early stage
and no decision to sell has been made.
BHP operates Liverpool Bay, which consists of five producing
offshore gas and oil fields in the Irish Sea and the Point of Ayr
onshore processing plant in north Wales, and associated
infrastructure. It owns a 46.1% stake in the operation, while ENI
SpA (E) owns the rest.
The Melbourne-based company also holds a 16% non-operating
interest in the Bruce oil and gas field in the North Sea and
operates the Keith field in which it has a 31.83% stake.
Earlier this month, BHP agreed to sell a minority interest in
the planned Browse gas-export project off Western Australia to
PetroChina Co. (0857.HK) for US$1.63 billion in cash. In recent
months, it has also signed a deal to sell its diamonds business in
northern Canada to Harry Winston Diamond Corp. (HWD) for US$500
million in cash, completed the sale of a 37% stake in a South
African minerals sands business to partner Rio Tinto PLC (RIO) for
US$1.7 billion and said it would sell an undeveloped uranium
deposit in Australia to Cameco Corp. (CCJ) for US$430 million.
Analysts have said the sale of assets where BHP either doesn't
have a controlling interest or where the businesses lack scale and
can't be significantly expanded will help support ambitious plans
to spend roughly US$22 billion on BHP's U.S. shale oil and gas and
other businesses this financial year.
Write to Robb M. Stewart at robb.stewart@wsj.com
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