BHP Billiton Limited (ASX:BHP) says it has been forced to write down the value of its US shale gas assets by $2.73 billion in the wake of short term supply excess in the US.
The global miner says it will respond appropriately to changed market conditions by adjusting future development plans and shifting drilling from dry gas to the more prominent liquid gas fields.
The BHP board has publicly maintained the view that investment in US shale assets remains an astute decision for its shareholders.
As a result of the writedown both CEO Marius Kloppers and petroleum chief Mike Yeager have decided to give up their bonuses.
BHP Billiton generated a net profit of $9.9 billion in the first half of its 2012 financial year.