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BHP merges its oil and gas business with Woodside Petroleum

By Fitri Wulandari

07:19, 22 November 2021

An offshore oil and gas drilling platform in Australia
An offshore oil and gas platform in Australia - Photo: Shutterstock

BHP Group and Woodside Petroleum announced on Monday that they have signed a binding share sales agreement (SSA) for the merger of BHP’s oil and gas portfolio with Woodside.

Woodside will acquire the entire share capital of BHP Petroleum International in exchange for new Woodside shares with the merger expected to be completed in the second quarter of the 2022 calendar year, according to the statement.

The signing of the agreement follows the merger commitment deed announced on 17 August. The effective date of the merger would be 1 July 2021. 

Largest listed energy firm in ASX

On completion, the merger will create a global top 10 independent energy company by production and the largest energy company listed on the Australian Securities Exchange (ASX).

“Merging our petroleum business with Woodside creates a large, more resilient company, better able to navigate the energy transition and grow value while doing so,” said BHP CEO Mike Henry in the statement.

On completion of the merger, Woodside will issue new shares expected to comprise approximately 48% of all Woodside shares (on a post-issue basis) as consideration for the acquisition of BHP Petroleum.


2,020.64 Price
+0.070% 1D Chg, %
Long position overnight fee -0.0197%
Short position overnight fee 0.0115%
Overnight fee time 22:00 (UTC)
Spread 0.30


43,651.35 Price
-0.910% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


15,912.50 Price
+0.260% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 1.8


0.63 Price
-0.880% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

Dual listing

Woodside will retain its primary listing on the ASX. The company is currently pursuing a secondary listing on the New York Stock Exchange through an American depository receipt arrangement, with a target of being active by completion.

Completion of the merger is subject to satisfaction or waiver of conditions precedent by 30 June 2022 or an agreed later date. Some of the conditions include approval by regulatory and competition authorities; approval by Woodside shareholders; and a report by independent experts appointed by Woodside that the merger is in the best interest of Woodside shareholders.

Woodside plans to hold a shareholder meeting to seek approval for the merger in the second quarter of 2022.

BHP petroleum business

BHP petroleum business has oil and gas assets in the US Gulf of Mexico, Australia, Trinidad and Tobago, and Algeria, and appraisal and exploration options in Mexico, Trinidad and Tobago, western US Gulf of Mexico, Eastern Canada, and Barbados.

BHP sells its crude oil and condensate, gas and natural gas liquids on the international spot market or domestic market. The total gross asset value of the BHP petroleum business as at 30 June 2021 was $15.4bn. It contributed $3.9bn to BHP group revenue and generated earnings before interest, taxes, depreciation, and amortisation of $2.3bn for the year ended 30 June 2021.

Read more: Shell sells £1.3bn stake in Australia's Woodside Petroleum

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The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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