MARKET TALK: BHP Has Potential Oil Opportunities In Gulf - ML

18th Jun 2010 02:37

0137 GMT [Dow Jones] BHP Billiton (BHP.AU) could potentially have the opportunity to up its stake in some quality Gulf of Mexico oil fields as BP (BP.LN) moves to sell assets to fund damage claims from the recent oil spill, Merrill Lynch says. BP has committed to sell US$10 billion in assets as it sets up a US$20 billion fund for damages claims. ML notes BHP is a joint venture partner with BP in the Mad Dog and Atlantis fields and that BP's stakes in the two operations could yield something like the US$10 billion it needs, with its 56% stake in Atlantis worth about US$8 billion and its 60.5% stake in Mad Dog about US$3.4 billion. "In the event that BP does sell assets in the GoM, we view Mad Dog as the real prize for BHP due to its significant growth potential," ML says. Maintains neutral rating for BHP with A$45.30 target price; BHP up 0.7% at A$39.09. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 17, 2010 21:37 ET (01:37 GMT)