New Wisdom Investment Limited
BHP Bullish The Oil And Gas Markets
(Oct 08, 2016)
The world’s biggest miner, BHP Billiton, reckons oil and gas markets will come back faster than the mined commodities within its portfolio, according to a Bloomberg report.
The comments came as the major weighed up where to focus M&A activity and on which projects a US$5 billion budget might be spent.
BHP said recovering oil prices and efforts to lower costs made petroleum investment opportunities more attractive, according to the report.
“While currently well supplied, underlying fundamentals suggest both oil and gas markets are improving more quickly than our minerals commodities,” BHP petroleum chief Steve Pastor said.
“Petroleum is well placed to maintain its position as BHP Billiton’s highest margin business and to grow its free cash flow contribution.”
The company is due to make a decision on its investment in the BP-operated Mad Dog 2 oil and gas project in the Gulf of Mexico before the end of the first quarter next year. Its share of the project was estimated at $2.5 billion and the same again was pending on potential capex.
Created from Mining Journal