BHP Billiton Ltd. (NYSE: BHP) said Monday it is embarking on an acquisitions program to expand its business while the recent market selloff of global assets has reached attractive levels.
The Australia-based global miner also said the Gulf of Mexico oil-spill crisis has impacted some of its projects there, cutting top-line growth from its previous guidance of 10 per cent growth for the year ending June 10.
�We have not spent much time externally. But we are now spending more time externally,� BHP’s petroleum president Michael Yeager said. �As we grow our capabilities … this powerful balance sheet that we have is an enormous tool.�
�And when you combine our health and strength, with some slowness in the market area, it is something that we do not want to let pass us by,� Yeager added.
Yeager said to Reuters that BHP petroleum unit decided to restart its exploration program, but he didn�t comment further about the intentions of BHP�s other commodities units.
One possible acquisition involves speculation surrounding BHP�s smaller rival Woodside Petroleum Ltd., which partners with the Aussie giant in important projects in multiple regions throughout the world, including projects in Australia and the Gulf or Mexico.
Gulf of Mexico
Yeager said the Gulf of Mexico projects continue to be impacted by the oil spill at the British Petroleum (BP) Macondo well, which BHP responded with diverting two of its four drilling rig�which were slated for its own Atlantis and Mad Dog fields�to help containment operations at the spill site.
BHP said it intends to develop the Atlantis oil field despite uncertainties of the future of the Gulf, saying it remains committed to the region, and seeks the potential for significantly expanded revenue from its operations there.
“We are confident that our long-term strategy will not be impacted. If anything, we will look to see if there are any opportunities to see what else we can do,” Yeager said.
BHP�s major concern regarding the Atlantis oil field is the potential political response to the Gulf spill from many U.S. legislators and President Obama who seek an investigation into safety issues at the platform. BHP has a 44 per cent stake in the project, and BP has the rest.
According to BHP�s latest filing, its petroleum business accounts for approximately 25% of its combined earnings.
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