BHP to exit US shale with deals worth $10.8 billion

BHP has entered into agreements to sell its entire interests in the Eagle Ford, Haynesville, Permian, and Fayetteville onshore US oil and gas assets for a combined base consideration of $10.8 billion, payable in cash.

BHP has entered into agreements to sell its entire interests in the Eagle Ford, Haynesville, Permian, and Fayetteville onshore US oil and gas assets for a combined base consideration of $10.8 billion, payable in cash.

BP American Production Co. agreed to acquire 100% of the issued share capital of Petrohawk Energy Corp., the BHP subsidiary that holds the Eagle Ford, Haynesville, and Permian assets, for $10.5 billion. The assets—470,000 net acres of licenses—have combined current production of 190,000 boe/d, about 45% of which is liquid hydrocarbons, and 4.6 billion boe of resources. In the 2018 financial year these assets produced 58.8 million boe, BHP said.

For BP, the deal includes a new position in the liquids-rich Permian-Delaware basin and increases the liquid hydrocarbon portion its US onshore production and resources to around 27% of production and 29% of resources from the current 14% and 17%, respectively, BP said.

MMGJ Hugoton III LLC, owned by Merit Energy Co., agreed to acquire 100% of the issued share capital of BHP Billiton Petroleum (Arkansas) Inc. and 100% of the membership interests in BHP Billiton Petroleum (Fayetteville) LLC, which hold the Fayetteville assets, for a total consideration of $300 million. The 260,000 net acres produced 13.3 million boe (79.9 bcf of gas) in the 2018 financial year.

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