BHP is now obviously looking to make more investment in energy business. It is always rumoured that BHP would like to buy Woodside, but the never happened.
BHP already has a lot of off shore gas in NWS and Browse Basin. BHP and ExxonMobil hold 50 per cent each of Scarborough, which holds about 10 TCF. BHP owns all of Thebe, which contains 2-3 TCF of gas. BHP had been in talks with Chevron about tying in Scarborough with the Wheatstone project, and Woodside, about doing the same with Pluto. BHP and ExxonMobil were hoping to make a decision on how to develop the fields with a view to production towards 2020.
So, it is going to be quite busy with gas activities in the north of WA in this decade. We will see how NSE's shale gas business will play out with Conoco in next year after drilling. It's going to be big IMO!
NSE Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
