BHP Billiton is planning to divest its shale assets in the US following its assertion that they are a non-core part of the company’s business.
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The move comes after the company was advised by US hedge fund firm Elliott Associates in April this year to incorporate changes in its company structure and demerge its US petroleum assets into a separate entity.
However, at that time, BHP rejected the proposal owing to the fact that the costs of implementing it would outweigh benefits.
Announcing its latest annual results, BHP stated: “We have determined that our onshore US assets are non-core and we are actively pursuing options to exit these assets for value.
“In the meantime, we will complete well trials, acreage swaps and assess midstream solutions to increase the value, profitability and marketability of our acreage.”
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By GlobalDataEarlier this month, the company discovered oil in multiple horizons at the Wildling-2 appraisal well in the Gulf of Mexico.
The diversified company is also engaged in the mining business and planning to undertake a petroleum exploration programme with an expenditure of $715m.
The second phase of the company’s Petroleum Mad Dog in the Gulf of Mexico will involve a capital expenditure of $2.15bn.
As part of this, construction of a production facility with a capacity of up to 140,000 gross barrels of crude oil per day is currently in progress and is expected to be ready by 2022.
Image: Fayetteville Shale USA. Photo: courtesy of BHP.
