BHP Billiton ponders writedown of US shale gas assets

May 15, 2012

BHP Billiton Petroleum is considering whether to write down its US shale gas assets by the end of the quarter, as it already plans to cut the number of shale gas wells it drills in the coming months, the company’s chief executive officer told the Australian Petroleum Production & Exploration Association conference in Adelaide.

Paula Dittrick

Michael Yeager said BHP Billiton plans to spend slightly less than the $4 billion that it originally budgeted for onshore US operations.

BHP Billiton acquired Petrohawk Energy Corp., Houston, for $12.1 billion, giving the Australian firm operated positions in the US Eagle Ford, Haynesville shale resource plays, and the Permian basin (OGJ Online, July 25, 2011).

BHP Billiton plans to review its assets at the end of its financial year on June 30.

“We hope everybody knows that we'll take another accounting snapshot in the future and whenever those circumstances are changed, that whatever action we take now, may get reversed later on,” Yeager said.

About the Author

Paula Dittrick | Senior Staff Writer

Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.

Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.