BHP's Pyrenees Floating Production, Storage and Offloading facility, Western Australia

BHP Billiton eyes deepwater oil assets

Australia

MELBOURNE, May 18, 2015 – BHP Billiton’s petroleum chief has said that the company is looking to take advantage of the drop in oil prices and acquire offshore assets, Reuters news agency reported on Monday.

At the Australian Petroleum Production & Exploration Association’s (APPEA) oil and gas conference in Melbourne on May 18, petroleum president Tim Cutt told reporters that the company can use its deepwater drilling expertise to boost growth while it slows expansion in shale.

Speaking to Reuters, Cutt said, “We’re not going to rely on the U.S. shale. We’re going to have to expand back into the conventional business.” The move reflects the company’s view that oil prices will rebound in 2018.

Cutt also indicated that BHP’s Scarborough LNG project with Exxon Mobil is to be put on hold. The development comes amid lower LNG prices and increasing competition from US producers.