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BHP says will consider asset swaps as part of shale exit

Published 08/03/2018, 06:42 am
Updated 08/03/2018, 06:50 am
© Reuters.  BHP says will consider asset swaps as part of shale exit
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By Jessica Resnick-Ault

HOUSTON, March 7 (Reuters) - Global miner BHP BHP.AX BLT.L will consider swapping certain onshore oil and gasassets with competitors' offshore assets, as part of its effortto exit U.S. shale formations, Steve Pastor, BHP's president forpetroleum operations, said on Wednesday.

BHP, facing calls from activist investor Elliott Advisors tomake changes to its business, had previously said it plans tosell its onshore U.S. shale assets. BHP said last week that thestake was on track with initial bids expected in the Junequarter. L4N1QA1AW

“We're also talking with some counterparties in veryspecific circumstances about the potential to do some assetswaps and pick up some high quality tier 1 acreage," Pastorsaid, referring to the most promising offshore assets. Any swapwould need to be competitive with what BHP could fetch in asale, he said.

BHP is not looking for existing production platforms, hesaid, speaking to Reuters at the CERAWeek by IHS Markitconference. Rather, the company is seeking acreage that has beenfound viable for production, "where we can come in as anoperator and really unlock significant incremental value throughthe development phase.”

The assets swaps could augment the company's explorationprogram, he said. Pastor said the company would consider sellingdividing its acreage for multiple buyers; it currently ownsonshore U.S. assets in Texas, Louisiana and Arkansas.

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