Fossil energy – merger Woodside and BHP
Today Woodside Energy announced a proposed merger with BHP’s petroleum business to create a top ten independent energy company.
The merger will transform Woodside by doubling production, diversifying the portfolio and offering multiple growth opportunities.
The proposal represents long-term value for Woodside and BHP shareholders, delivering a geographically diverse and balanced portfolio, while combining the global experience, proven management and technical expertise of the Woodside and BHP Petroleum.
Woodside’s existing emissions reduction targets will be extended to the enlarged portfolio, including our aspiration to be net zero by 2050.
With the combination of two high quality asset portfolios, the proposed merger would create the largest energy company listed on the ASX, with a global top 10 position in the LNG industry by production. The combined company will have a high margin oil portfolio, long life LNG assets and the financial resilience to help supply the energy needed for global growth and development over the energy transition.
The combined business will benefit from the joint management and technical petroleum expertise of both companies, led by Meg O’Neill as the CEO and Managing Director.
Leading HSE performance, LNG production and marketing, deepwater oil development and production, exploration success, and international experience will come together to create a differentiated set of capabilities. These capabilities are further supplemented through investments in technology and low carbon solutions, and strong governance systems.
In addition, it is intended that the Woodside Board will appoint a current BHP director as a Woodside director on completion.