BHP has confirmed that it intends to exit its 50% interest in Bass Strait exploration and production permits offshore Gippsland basin, Victoria.
Chief Executive Officer Mike Henry made the statement in the context of the company’s full 2019-2020 results report Aug. 18.
The company is looking to withdraw from all its later-life assets, including Bass Strait, and will turn its focus on higher value assets, he said.
BHP originally took up the permits in the early 1960s, bringing in Esso Exploration (now ExxonMobil) to be equal 50% interest holder and operator.
The major oil discoveries were made in the latter half of the 1960s into the early 1970s which catapulted Australia into oil self-sufficiency within a few years of being brought on stream. Discoveries also included huge gas reserves which transformed Victoria from coal gas to natural gas as an energy source.
BHP’s intention to sell its interest follows a similar move by ExxonMobil last year.
Analysts suggest BHP’s stake could be worth up to $3 billion.