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    BHP's gas output drops 3% in Jul-Sep

Summary

The execution of a share sale agreement and integration and transition services agreement pertaining to the merger with Woodside is expected to take place in November, it said.

by: Shardul Sharma

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BHP's gas output drops 3% in Jul-Sep

Anglo-Australian multinational BHP’s natural gas production during the three months to September 30 (Q1) was 88.4bn ft3, down 3% year/year, it said on October 19.

The company said that the decrease was because of lower output at Northwest Shelf and natural field decline across the portfolio. Total petroleum production was up 3% yr/yr to 27.5mn boe, however. Production is expected to be between 99 and 106mn boe in FY 2021-22, BHP said.

Commenting on the merger with Woodside, BHP said that the execution of a share sale agreement and integration and transition services agreement is expected to take place in November. Following all the approvals, the merger is expected to be completed by the middle of 2022, it said.

In August, Woodside and BHP entered into a deal to combine their respective oil and gas portfolios into a gas-heavy entity through an all-stock merger. The merged entity will be owned 52% by existing Woodside shareholders and 48% by existing BHP shareholders.

The entity will be among the top 10 independent energy companies with production of 200mn boe for this full year, and 2P reserves of 2bn boe, 59% of which is gas. It is targeting synergies of $400mn/yr from corporate processes and systems, combining capabilities and improving capital efficiency.