In a further move away from fossil fuels, BHP, the world’s top mining company, is selling its global oil and gas assets to Australian energy giant Woodside Petroleum.

Following months of speculation, the companies announced an all-stock merger of BHP’s entire petroleum division spanning Australia, the Americas and North Africa to Perth-based Woodside.

The combined Woodside-BHP Petroleum entity would be owned 52 per cent by Woodside shareholders and 48 per cent by BHP shareholders, the companies said. Woodside interim chief executive Meg O’Neill was named on Tuesday as permanent CEO and will lead the merged business.

“Bringing the BHP and Woodside assets together will provide choice for BHP shareholders, unlock synergies in how these assets are managed and allow capital to be deployed to the highest quality opportunities,” BHP chief executive Mike Henry said.

Rick Maggi