BHP Billiton is seeking to sell some of its shale gas assets in the US, as part of the company's efforts to focus on opportunities in oil segment.
The company is now reviewing options for the divestment of Fayetteville shale gas assets, after recently rejecting a proposal from Elliott Management for spin-off of its $22bn worth petroleum assets in the US.
BHP said in a statement: “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.”
The company attempted to sell the Fayetteville assets in Arkansas more than two years ago, but abandoned divestment plans to maximize the value of the assets, Reuters reported.
According to BHP’s annual accounts, the valuation of the business stood at $919m as of 31 December 2016.
Earlier this month, the Australian-based mining, metals and petroleum company rejected activist investor Elliott Management's call to demerge its US petroleum assets.
BHP said that the costs and risks associated with the demerger proposal from the activist investor would considerably outweigh any possible benefits.
The miner added that it had trimmed its portfolio by more than one third by the sale of more than $7bn assets in the US in the last four years.
BHP said: “We have outlined our clear roadmap to maximise the value of our assets.”
Besides, the company said that the sale of Fayetteville assets is part of its review, denying its connection with Elliott's proposal.
Image: Fayetteville Shale USA. Photo courtesy of BHP Billiton.