BHP (ASX:BHP) share price on watch amid news all petroleum assets to go

Fingers are pointing to the possibility the deal with Woodside is progressing.

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The BHP Group Ltd (ASX: BHP) share price could be a mover on Thursday after reports the company is progressing the sale of its petroleum business.

What’s happening?

According to reporting last night by The Australian regarding the likely purchaser, Woodside Petroleum Limited (ASX: WPL), “sources in the market [are] now suggesting that a planned deal by the $22bn listed energy producer has considerably progressed and is on track to be announced in about three weeks.”

With August reporting season right around the corner, The Australian reported that “a number of sources are betting that the announcement will be made at Woodside and BHP’s upcoming results presentation”.

The BHP share price tipped 1.86% higher last Tuesday when Reuters reported the initial speculation that Woodside could be the one stepping in to buy BHP’s oil and gas assets.

What does this mean for BHP?

The Australian reported, “suggestions in the market are that Woodside would pay for the BHP assets through its own scrip that would then be distributed to BHP’s shareholders”.

From a revenue perspective, BHP’s petroleum earnings pale in comparison to its big earners, such as iron ore and copper.

According to BHP’s 1H21 results, petroleum delivered US$1,619 million in revenue compared to iron ore and copper revenues of US$14,058 million and US$7,067 million, respectively.

Overall, petroleum accounted for approximately 6.3% of the group’s 1H21 revenue.

BHP enters nickel supply agreement

Other recent headlines impacting the BHP share price have included its nickel supply agreement with Tesla Inc.

BHP chief commercial officer, Vandita Pant commented on the agreement saying, “We are delighted to sign this agreement with Tesla Inc., and to collaborate with them on ways to make the battery supply chain more sustainable through our shared focus on technology and innovation”.

But it isn’t just BHP making its move into battery and renewable-related materials.

On Wednesday, Rio Tinto Ltd (ASX: RIO) confirmed a $2.4 billion investment into its Jadar lithium-borates project in Serbia.

According to Rio Tinto, the mine is expected to begin production in 2026 and ramp up to full production by 2029.

BHP share price hits record high this week

Oil and gas assets aside, the BHP share price continues to find success, cruising to a new record high of $53.65 on Tuesday.

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