Australia’s Woodside Petroleum Ltd and BHP Group said Tuesday they would merge their natural gas and oil portfolios in an all-stock transaction estimated to be worth $28 billion, to create one of the biggest producers in the world.

Woodside BHP Deal

The proposed merger under the Woodside brand would create the largest energy company listed on the Australian stock exchange, with a global top 10 position in the liquefied natural gas (LNG) industry by production. 

Woodside operated around 6% of global LNG supply in 2020. Woodside and BHP’s combined assets are forecast to produce around 200 million boe net in 2021. The production mix would be 46% LNG, 29% oil/condensate and 25% Australian gas and liquids. 

‘Geographically Diverse’

“Merging Woodside with BHP’s oil and gas business...