"For BHP, if you look at its Australian (energy) assets, if they could exit those in a meaningful way for something approximating value, that would be a good outcome," said Brenton Saunders, a portfolio manager with shareholder Pendal Group. Credit Suisse and Citi value the Australian energy assets - including the Bass Strait, Northwest Shelf LNG and the Scarborough gas field - at $3 billion to $5 billion. Woodside Petroleum Ltd is seen as the most logical buyer as they would boost its free cash flow and increase its stakes in key projects, although not all investors favour such a tie-up given the asset mix and likely need for an equity raising. Woodside declined to comment. BHP would also have to take a discount on any sale given some heavy decommissioning liabilities, said Credit Suisse analyst Saul Kavonic, although a sale could boost its ESG rating and attract new shareholders. "BHP could sell these for discounts but still increase share value though a re-rating on the rest of their business," he said.