22 C
Georgetown
Monday, October 26, 2020

Mining giant BHP to sell US shale assets

Must Read

Venezuela says it has produced drug capable of eliminating COVID-19

(teleSUR) Venezuela’s President Nicolas Maduro Sunday announced the discovery of a high-effective treatment capable of eliminating COVID-19 and pointed out that a drug...

Oil price slides below $39 as Libya ramps up production

(Bloomberg) --Oil extended its slide to a second day on a cocktail of surging coronavirus cases in the U.S....

bp hits first gas at Qattameya field

On Monday bp announced the start of gas production from its latest development ‎offshore Egypt – the Qattameya gas...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

(BBC) Mining giant BHP Billiton will sell its US shale assets after pressure from shareholders to offload the underperforming business.

The miner said a number of parties are interested in the assets and it is “actively pursuing options to exit”.

Shareholder Elliott Management has campaigned for strategic changes at BHP including the sale of its shale operations.

It comes as the company reported $5.89bn (£4.56bn) annual net profit.

Shale assets

BHP said on Tuesday that it deemed the shale business “non-core” and was exploring options to offload the assets.

Chief executive Andrew Mackenzie said a number of parties are interested in acquiring its onshore US oil and gas operations, but would not name the price the company is seeking for the assets.

BHP’s entry into US shale came at the peak of the fracking boom in 2011. A slump in oil prices slugged the business and forced a $7.2bn writedown last year.

BHP chairman Jac Nasser, who retires this year, recently conceded a $20bn investment in shale six years ago was a mistake in hindsight.

Analysts have suggested the business could sell for about half that in today’s market.

New-York based fund manager Elliott Management had been agitating for a sale or other form of divestment of the US shale business.

The activist shareholder has publicly campaigned for a series of other changes at BHP, including the elimination of dual-structured Australia and London stock listings, and higher shareholder returns.

Commodity rebound

Plans to sell its US shale operations came as the global miner posted an annual net profit of $5.89bn, following a record $6.39bn loss a year earlier.

The result was slightly below analysts’ expectations.

The miner tripled its final dividend to $0.43 a share, which was also shy of expectations.

The Anglo-Australian firm, like other miners, has benefited from a rebound in industrial metals prices after a slump caused by supply gluts and economic slowdown in China.

China is the world’s biggest buyer of commodities.

- Advertisement -

Latest News

Venezuela says it has produced drug capable of eliminating COVID-19

(teleSUR) Venezuela’s President Nicolas Maduro Sunday announced the discovery of a high-effective treatment capable of eliminating COVID-19 and pointed out that a drug...

Oil price slides below $39 as Libya ramps up production

(Bloomberg) --Oil extended its slide to a second day on a cocktail of surging coronavirus cases in the U.S. and Europe, dwindling prospects for...

IDB expects Guyana’s ‘huge deepwater oil discoveries’ to keep growing

The Inter-American Development Bank (IDB) expects the mega deepwater oil discoveries offshore the South American country of Guyana will keep growing in the coming...

“It’s a great time to be a woman entrepreneur in Guyana” says new business owner

With the emergence of offshore exploration and production activities in Guyana, more Guyanese have been positioning themselves to benefit from growing business opportunities in...

bp hits first gas at Qattameya field

On Monday bp announced the start of gas production from its latest development ‎offshore Egypt – the Qattameya gas field in the North Damietta...

More Articles Like This