BHP’s petroleum exit shows O&G may follow coal’s path to toxic status

It’s likely that this deal signals that the era of paying premiums to acquire O&G assets is over. From now on, companies seeking to offload these type of assets will be forced to accept ever-diminishing prices.

THE market hasn’t exactly cheered BHP Group’s proposed exit from its oil and gas (O&G) business, with shares of both the mining giant and the acquirer, Woodside Petroleum, tumbling in the wake of deal.

A point of concern for investors is that BHP may have sold the assets too cheaply, and that getting only Woodside shares as payment is less than desirable.