BHP Mulling Expansion of Shale & LNG

Close on the heels of its $12.1 billion acquisition of Petrohawk Energy Corp. (HK), BHP Billiton Ltd. is mulling expansion in liquefied natural gas and shale gas beyond the shores of the US.

"The shale gas is likely to play a big role in the world's energy scenario in near future and it's part of our medium to long-term strategy to participate in the process in other areas of the world too," said company CEO Marius Kloppers on Thursday. "The Petrohawk (acquisition) is another tool in our aim to have many tools in the tool kit in terms of unconventional gas, and we like to build on that,” Kloppers said.

The Petrohawk transaction and the $4.75 billion purchase of Chesapeake’s Fayetteville shale assets provided BHP, Australia's largest oil producer, a much-needed foray into the U.S shale gas, prompting the seventh-biggest independent oil and gas company in the world to go for further expansion in the LNG segment.

BHP which is a partner in Woodside Petroleum Ltd. (WPL)’s proposed Browse LNG project in Western Australia, feels that the company may have to fork out $20 billion to develop a prospective LNG venture with Exxon Mobil Corp. relying on the Scarborough and Thebe fields off northwest Australia.

Source: Bloomberg