BHP into 9/4

In my unofficial capacity as bookie I still have WPL as 6/4 favourites to take out FAR.
BHP is the big shortener this week into 9/4 second favourite.
Total is out to 5 to 1

BHP are looking to buy into conventional deepwater oil basins.
They are bullish on oil.
How many conventional deepwater oil basins are out there that tick all the boxes?
I know of one.
Any others?
Hopefully WPL are reading these articles.
I would love an all Ozzie bidding war.



BHP a new bull on oil prices
Peter Williams - The West Australian on October 6, 2016, 10:19 am

BHP Billiton operations petroleum president Steve Pastor.


BHP Billiton’s petroleum boss has sounded a bullish tone for recovering energy prices, flagging deepwater oilfield acquisitions and renewed hopes for its US shale gas assets.

Petroleum operations president Steve Pastor said BHP was rebalancing its portfolio from gas to oil because of the higher barriers to production.

Mr Pastor said the deal to sell 50 per cent of BHP’s stake in the Scarborough gas fields off the Pilbara to Woodside for $US400 million ($525 million) was an example of that strategy.

While WA’s gas demand was relatively flat at the moment, BHP did see Scarborough’s untapped resources as economically attractive and viable.

Mr Pastor said steadily increasing demand for oil and natural declines in supply would lead to higher prices.

“We do see more upside potential for oil than gas given gas resources are much more abundant, relatively easier to find and develop, and hence have a flatter cost curve,” he said.

Speaking ahead of an investor briefing in London yesterday, Mr Pastor said BHP was in the market for value-accretive acquisitions for deepwater conventional assets in basins the company knew geologically and economically.

“It’s got to be the right price and it’s got to play to our strengths,” he said. “We’re going to be very disciplined and make sure we don’t overpay.

“We don’t face the same constant pressures that our pure play oil and gas peers do that shape volumes and replace reserves even at a time and pace that doesn’t make sense.”

He said there had been “pretty bullish” expectations for oil price recovery in some acquisition opportunities considered, in both conventional and shale assets.

BHP’s onshore shale business was generating cash at current prices, with significant upside should they recover as expected.

Mr Pastor said the Permian field had the potential to become the largest production and free cash contributor in the company’s petroleum portfolio within five years.

Slumping energy prices led BHP in the past financial year has made a $US7.7 billion shale impairment.