BHP (ASX:BHP) has inked a deal to sell its shale asset for US$10.8 billion cash.
It comes as BP agreed to snap up BHP’s Petrohawk Energy Corporation, which owns the Eagle Ford, Haynesville and Permian assets onshore in the US for US$10.5 billion.
Meanwhile, Merit Energy Company’s MMGJ Hugoton III, will snap up BHP’s 100 per cent stake in BHP Petroleum for US$0.3 billion.
The sales are subject to customary approvals but are expected to be completed by the end of October 2018.
It expects to return the net proceeds from the transaction to shareholders, but it says it will confirm, when and how once the deals are completed.
In addition to the demerger of South32 (ASX:S32), BHP has announced or completed over US$18 billion in divestments over the past six years.
Shares BHP (ASX:BHP) are trading 2.38 per cent higher to $34.44.