• 21 hours This Will Be the Answer From China On U.S. Tariffs
  • 11 hours Bad News For The Climate: Coal Burning, And Carbon Emissions, Are On The Rise Again
  • 24 hours France Terrorist Attack?! At Least One Dead In French Supermarket Hostage-Taking
  • 12 hours China's Yaun/Gold backed Futures contracts
  • 1 day Twitcoin....
  • 19 hours U.S. Charges, Sanctions Iranians For Global Cyber Attacks on behalf of Tehran. What about sanctions on Russia?
  • 2 days Snowden Reveals Bitcoin Transactions Being Tracked by NSA
  • 10 hours Canada Bent On Ruining Its Oil Industry
  • 3 days Elon Musk’s $2.6 Billion Tesla Challenge
  • 19 hours The Facebook/Cambridge Analytica Scandal
  • 20 hours Surprise! Aramco Scraps International Listing Plans
  • 11 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 2 days Getting out of oil .. now
  • 2 days EU Proposes Online Turnover Tax For Big Tech Firms
  • 21 hours HAPPY RIG COUNT DAY!!
  • 2 days U.S. Judge To Question Big Oil On Climate Change
Solving Renewable Energy’s Biggest Problem

Solving Renewable Energy’s Biggest Problem

While renewable energy appears to…

Scientists Are One Step Closer To Nuclear Fusion

Scientists Are One Step Closer To Nuclear Fusion

Colorado State scientists have just…

Shell And Blackstone To Bid On BHP Billiton’s Shale Assets


Royal Dutch Shell and Blackstone Group will come together to bid on assets being offloaded by BHP Billiton, according to a new report by Reuters. The $10 billion bid would cover a portion of BHP’s U.S. shale operations.

BHP, Shell, and Blackstone denied comment on the story.

Private equity firms have begun investing in shale assets as the industry downturn reduces oil majors’ investment budgets. Devon Energy sold $553 million in shale gas assets in Texas to an unnamed equity firm this week.

Shell and Anadarko Petroleum already own lands that sit next to the BHP lands slated for sale. If Shell makes the purchase, it would create a larger contiguous area for the company’s shale drilling.

BHP plans to swap its onshore assets with offshore ones in order to exit U.S. shale plays, Steve Pastor, the firm’s president of petroleum operations, said this week.

Shell began drilling in the Permian in 2012, just a couple years before the market crash that continues to keep crude barrel prices low. In order to bring cash flow to positive levels in 2019, the Anglo-Dutch company plans to increase drilling in the Permian, where production is relatively cheap and profitable in bearish markets. Per barrel costs can be as low as $15 in the Texas formation.

BHP is reversing big changes in its Australia profile, however. The company and its U.S. partner, ExxonMobil, decided to abandon the 20-month-long sales process of their joint ageing oil assets offshore Australia and will keep ownership and operation of the fields and associated infrastructure, the companies said last month, in what analysts see as a result of the higher oil prices compared to when the sales process was launched in mid-2016.

“After consideration of a range of options, we have currently decided to retain ownership and operation of these assets,” Exxon’s Australian unit, Esso Australia, said.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News