BHP Billiton ponders writedown of US shale gas assets

By OGJ editors

BHP Billiton Petroleum is considering whether to write down its US shale gas assets by the end of the quarter, as it already plans to cut the number of shale gas wells it drills in the coming months, the company’s chief executive officer told the Australian Petroleum Production & Exploration Association conference in Adelaide.

Michael Yeager said BHP Billiton plans to spend slightly less than the $4 billion that it originally budgeted for onshore US operations.

BHP Billiton acquired Petrohawk Energy Corp., Houston, for $12.1 billion, giving the Australian firm operated positions in the US Eagle Ford, Haynesville shale resource plays, and the Permian basin (OGJ Online, July 25, 2011).

BHP Billiton plans to review its assets at the end of its financial year on June 30.

“We hope everybody knows that we'll take another accounting snapshot in the future and whenever those circumstances are changed, that whatever action we take now, may get reversed later on,” Yeager said.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...