Page 353 - Annual Report 2020

Disclosure of Iran-related activities pursuant to section 13(r) On 30 November 2018, BHP Billiton Petroleum Great Britain Ltd
of the US Securities Exchange Act of 1934 (BHP GB), a wholly owned subsidiary of BHP, and its co-venturers
Section 13(r) of the US Securities Exchange Act of 1934, as in the Bruce and Keith gas and oil fields offshore United Kingdom
amended (the Exchange Act) requires an issuer to disclose in its (BP Exploration Operating Company (BP), Marubeni Oil & Gas (UK) Strategic Report
annual reports whether it or any of its affiliates knowingly engaged Limited (Marubeni) and Total E&P UK Limited (Total)) completed
in certain activities, transactions or dealings relating to Iran. If the sale of their interests in the Bruce and Keith gas and oil fields
applicable, disclosure is required even where the activities, to Serica Energy (UK) Limited (Serica) (the Bruce and Keith
transactions or dealings are conducted outside the United States Transaction). BHP divested its entire licence interests in Bruce
by non-U.S. persons in compliance with applicable law, and and Keith but retained the obligation to fund decommissioning
whether or not the activities are sanctionable under U.S. law. in accordance with its previous licence interest.
Provided in this section is certain information concerning activities The transfer of licence interests and retention of decommissioning
of certain affiliates of BHP that took place in FY2020. BHP believes liabilities for the Bruce and Keith co-venturers in the respective gas
that these activities are not sanctionable either as being outside the and oil fields is described below:
scope of U.S. sanctions, or within the scope of a specific licence
issued by the U.S. Department of the Treasury‘s Office of Foreign Governance at BHP
Assets Control (OFAC).

Bruce Keith
Pre-sale Post-sale Post-sale Pre-sale Post-sale Post-sale
interest licence interest decom. interest interest licence interest decom. interest
% % % % % %
BP 37 1 37 34.83 0 34.83
Total 43.25 1 43.25 25 0 25
BHP GB 16 0 16 31.83 0 31.83
Marubeni 3.65 0 0 8.33 0 0 Remuneration Report
Serica 0 98 3.75 0 100 8.33

While the sale closed on 30 November 2018, it was effective in Uranium production in Australia
economic terms as of 1 January 2018. In addition to initial cash To mine, process, transport and sell uranium from within Australia,
consideration received from Serica at completion, BHP we are required to hold possession and export permissions, which
subsequently received, and will continue to receive: are also subject to regulation by the Australian Government or
• a share of pre-tax net cash flow attributable to its historic interest bodies that report to the Australian Government.
in the Bruce and Keith gas and oil fields of 60 per cent during
December 2018, 50 per cent in CY2019 and 40 per cent in each To possess nuclear material, such as uranium, in Australia, a Permit Directors’ Report
of CY2020 and CY2021 under a Net Cash Flow Sharing Deed to Possess Nuclear Materials (Possession Permit) must be held
pursuant to the Australian Nuclear Non-Proliferation (Safeguards)
• a share of projected decommissioning costs up to a Act 1987 (Non-Proliferation Act). A Possession Permit is issued by
specified cap the Australian Minister for Foreign Affairs. Compliance with the
The Bruce platform provides transportation and processing Non-Proliferation Act is monitored by the Australian Safeguards
services to the nearby Rhum gas field pursuant to a contract and Non-Proliferation Office, an office established under the
between the Bruce owners and Rhum owners (the Bruce-Rhum Non-Proliferation Act, which administers Australia’s domestic nuclear
Agreement). At the same time as the Bruce and Keith Transaction, safeguards requirements and reports to the Australian Government.
Serica acquired from BP its 50 per cent interest and operatorship To export uranium from Australia, a Permit to Export Natural
of the Rhum gas field. The Rhum gas field is now owned by a 50:50 Uranium (Export Permit) must be held pursuant to the Australian
unincorporated joint venture arrangement between Serica and Customs (Prohibited Exports) Regulations 1958. The Export Permit is Financial Statements
Iranian Oil Company (UK) Limited (IOC). IOC is an indirect issued by the Minister with responsibility for Resources and Energy.
subsidiary of the National Iranian Oil Company (NIOC), which
is a corporation owned by the Government of Iran. A special permit to transport nuclear material is required under
OFAC issued licence No. IA-2018-352294-2 (the OFAC Licence) the Non-Proliferation Act by a party that transports nuclear
material from one specified location to another specified location.
authorising BP, Serica and all U.S. persons and U.S.-owned or As we engage service providers to transport uranium, each of
controlled foreign entities identified in the licence application those service providers is required to hold a permit to transport
to provide goods, services and support for the operation, nuclear material issued by the Australian Safeguards and
maintenance and production of the Rhum gas field, and goods, Non-Proliferation Office.
services and support to the Bruce platform for a period from
2 November 2018 through 31 October 2019. On 22 October 2019, BHP Group Plc
OFAC renewed this licence through to 28 February 2021. OFAC also There are no laws or regulations currently in force in the Additional information
provided an assurance that non-U.S. persons would not be exposed United Kingdom that restrict the export or import of capital
to U.S. secondary sanctions for engaging in these activities and or the payment of dividends to non-resident holders of BHP
transactions involving Rhum or the Bruce platform, namely Group Plc’s shares, although the Group does operate in some
providing goods, services and support to the Rhum field. other jurisdictions where the payment of dividends could be
BHP continues to monitor developments concerning U.S. sanctions affected by exchange control approvals.
with respect to Iran to maintain compliance with applicable From time to time, certain sanctions are adopted by the UN
sanctions laws and requirements. Although BHP has no ongoing Security Council and/or various governments, including in the 7
direct dealings with any Iranian party, because BHP will receive United Kingdom, the United States, the EU and Australia against
ongoing consideration from Serica related to the sale of its interest certain countries, entities or individuals that may restrict the
in the Bruce-Rhum Agreement, BHP has included this disclosure. export or import of capital or the remittance of dividends to
BHP recognised the following transaction in FY2020 related to certain non-resident holders of BHP Group Plc’s shares.
the Bruce-Rhum Agreement. For the period 1 July 2019 to 30 June There are no restrictions under BHP Group Plc’s Articles of Shareholder information
2020, BHP received $US2.4 million from Serica under the Net Cash Association or (subject to the effect of any sanctions) under
Flow Sharing Deed. English law that limit the right of non-resident or foreign owners
to hold or vote BHP Group Plc’s shares.
There are certain restrictions on shareholding levels under
BHP Group Plc’s Articles of Association described below.

BHP Annual Report 2020 351