BHP Puts US Shale Asset on Sale
Australian mining, oil and gas giant BHP Billiton announced April 26 it is putting its Fayetteville shale gas asset in the US state of Arkansas back up on sale. The company first tried to sell the asset two years ago but failed.
“Divestment of non-core onshore US acreage is progressing, with the sales process well advanced for up to 50,000 acres of the southern Hawkville. Our Fayetteville field is currently under review and we are considering all options including divestment,” BHP said April 26.
Fayetteville shale gas asset in Arkansas (Credit: BHP Billiton)
BHP is a big investor in US shale sector where it holds more than 838,000 net acres in four shale areas – Eagle Ford, Permian, Haynesville and Fayetteville – where it produces oil, condensate, gas and natural gas liquids. The Black Hawk area of Eagle Ford and the Permian area are two of BHP’s largest liquids-focused field developments.
BHP also said April 26 that its gas production for the nine months that ended March 31, 2017 was down 12% to 501bn ft3. “The decline primarily reflects lower onshore US gas volumes as a result of the value driven decisions to defer development activity and the divestment of our Pakistan gas business in December 2015. This was partially offset by higher demand at Bass Strait and Macedon, and increased LNG volumes at North West Shelf,” it said.
The Bass Strait Longford gas conditioning plant was fully commissioned during 1Q2017 and is now running at design capacity, enabling full production from the Turrum and Kipper fields.
BHP's liquids production for the nine months ending March 2017 was 19% lower overall at 73mn barrels oil equivalent, but increased in Algeria.
Shardul Sharma