Anglo-Australian mining giant BHP Bilton has reaffirmed plans to exit US shale.
Speaking to investors at the firm’s AGM in London, new chairman Ken MacKenzie – who replaces the retiring Jac Nasser – said there was “significant work in progress” to push ahead with plans to exit unconventional oil and gas assets in America.
The plans to scrap the under performing shale assets was first outlined at the firm’s full year 2017 results earlier this year in an attempt to appease shareholders.
BHP plunged some $20billion into shale at the height of the 2011 boom.
It is understood that the asset value could be halved in value now.
Mr MacKenzie said: “There is significant ‘work in progress’ in shaping the portfolio in this way, perhaps most notably in shale, where in August we announced that our onshore US shale assets are no longer aligned with our long-term strategy and are therefore non-core.
“We are actively pursuing ways to exit these assets for value.”
Andrew Mackenzie, chief executive officer, added that options to dispose of the acerage were being carefully considered.
He added: “This is underway, but we will be patient as we examine all the options. We know what the acreage is worth in our hands and we are prepared to take time to best maximise shareholder value.”
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