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BHP writes down $2 bln on US energy business


BHP writes down $2 bln on US energy business

Ahead of publishing its annual results next month, resources giant BHP Billiton has announced a substantial write-down.

The firm is shaving around 2 billion dollars off the value of its US onshore oil and gas business, amid weak prices.

BHP said the majority of the charge related to its Hawkville gas field in South Texas, with the rest stemming from its deal to buy US firm Petrohawk Energy in 2011.

BHP’s petroleum president Tim Cutt.
said: “While the impairment of the Hawkville is disappointing, it does not reflect the quality of our broader onshore US business.”

The write-down has sparked criticism from investors that the firm overpaid for assets.

BHP also took a 3.3 billion dollar write-down in 2012, blaming a drop in US gas prices.

The firm announced in January that it was cutting its shale operations by 40 percent because of falling oil prices.