On August 17, 2021, the global mining giant BHP Billiton and Woodside reached an agreement to combine their oil and gas assets through an all-stock merger. The new company created will be the world's top 10 independent oil companies. In the new company, Woodside holds 52% of the shares, and BHP Billiton holds 48% of the shares.

Neither party announced the value of the transaction. But according to reports a few days ago, Woodside will acquire BHP Billiton's oil division for $14.7 billion. The new company after this formal merger will be listed in Australia. Thanks to soaring commodity prices, BHP Billiton's profits soared 42% in the year before the end of June, reaching $11.3 billion. However, due to the strengthening of the global carbon neutrality trend, BHP Billiton's fossil energy assets are not performing well. Its coal mine in New South Wales, Australia has experienced a plunge in value in the past year and is now in debt of 200 million US dollars.

According to the announcement issued by both parties, the new company's annual output is about 2 million barrels of oil equivalent. Of this, 46% is LNG, 29% is oil and natural gas condensate, and 25% is natural gas production. The company's assets cover Western Australia, the east coast of Australia, the U.S. Gulf of Mexico, Trinidad and Tobago and other countries and regions. 94% of production comes from OECD countries. The company's total oil and gas reserves exceed 2 billion barrels, of which 59% are gases and 41% are liquids.

Keywords: engineering construction, engineering news

BHP Billiton has been working to divest fossil energy assets. Prior to this merger, BHP Billiton had sold Colombian coal assets to Glencore in June. The assets of Mount Arthur Coal Mine in New South Wales were worth US$2 billion two years ago. In January 2021, they have been reduced by US$1.5 billion to between US$325 million and US$455 million. This Tuesday has become a debt of 200 million US dollars. Editor/Xing Wentao