BHP selling US shale assets for US$10.8 billion

Company News

by Jessica Amir

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.

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.