Australia-based global miner BHP on Friday said it was selling its onshore US oil and gas assets for $10.8 billion.
"Our priority with this transaction is to maximize value and returns to shareholders. In August 2017, we confirmed that we would seek to exit our US shale assets for value. Following a robust and competitive process, we have delivered on that commitment," BHP Chief Executive Officer Andrew Mackenzie said in statement.
Under the sale, a subsidiary of British oil and gas giant BP has agreed to acquire BHP subsidiary Petrohawk Energy Corporation for $10.5 billion. A unit of US oil and gas major Merit Energy Company will buy BHP Billiton Petroleum (Arkansas) and BHP Billiton Petroleum (Fayetteville) for $300 million.
BHP said it expects to recognize an impairment charge of about $2.8 billion post-tax against the carrying value of its onshore US assets.
Both sales are subject to customary regulatory approvals and conditions precedent, and BHP said it expected completion to occur by the end of October 2018.
Investors reacted positively to the news of the sale, with BHP shares up by 2.22 percent by 12:17 a.m. (AEST).
Cover image: Xinhua