BHP to sell US shale assets: report

USA

LONDON, August 31, 2017 – BHP Billiton has picked Citigroup and Barclays as advisers in a planned divestment from the company’s US shale enterprise, international media reported on Thursday.

The assets, which together could be worth around USD 10 billion, include acreage in Eagle Ford, Permian, Haynesville and Fayetteville, Reuters reported.

“The sellside advisors have only invited strategic players to bid for the onshore business at this point, which is likely to be sold in separate packages, some of which will draw more interest than others,” an anonymous banking source told the agency.

“Companies like Chevron, Occidental and ExxonMobil are all capable of doing this kind of deal, so the Permian and Eagle Ford assets will be an easy sale,” a second source added.

BHP’s drive to divest from many of its non-core interests comes amid increased spending for deepwater projects such as Trion and Mad Dog 2 in the Gulf of Mexico.

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