SYDNEY, July 27 (Xinhua) -- Australia-based global miner BHP on Friday said it was selling its onshore U.S. oil and gas assets for 10.8 billion U.S. dollars.
"Our priority with this transaction is to maximize value and returns to shareholders. In August 2017, we confirmed that we would seek to exit our U.S. shale assets for value. Following a robust and competitive process, we have delivered on that commitment," BHP Chief Executive Officer Andrew Mackenzie said in statement.
Under the sale, a subsidiary of British oil and gas giant BP has agreed to acquire BHP subsidiary Petrohawk Energy Corporation for 10.5 billion U.S. dollars. A unit of U.S. oil and gas major Merit Energy Company will buy BHP Billiton Petroleum (Arkansas) and BHP Billiton Petroleum (Fayetteville) for 300 million U.S. dollars.
BHP said it expects to recognize an impairment charge of about 2.8 billion U.S. dollars post-tax against the carrying value of its onshore U.S. assets.
Both sales are subject to customary regulatory approvals and conditions precedent, and BHP said it expected completion to occur by the end of October 2018.
Investors reacted positively to the news of the sale, with BHP shares up by 2.22 percent by 12:17 a.m. (AEST).
