JOHANNESBURG – Anglo-Australian multinational mining group, BHP, on Wednesday completed the sale of its interests in the Eagle Ford, Haynesville and Permian Onshore US oil and gas assets to BP America Production Company, a subsidiary of BP, for a gross consideration of $10.5 billion (R156bn).
BP paid one-half of the gross consideration at completion, less customary completion adjustments of $0.2bn, with the balance being payable in six equal installments over a six-month period, the first installment to be paid one month after completion.
Last month, BHP completed the sale of its Fayetteville onshore US gas assets for a consideration of $0.3bn. The net proceeds of the sale of its entire interests in the Eagle Ford, Haynesville, Permian and Fayetteville onshore US assets are $10.4bn.
The Eagle Ford, Haynesville and Permian fields comprise approximately 512 000 net acres where BHP produces oil, gas and natural gas liquids that are sold domestically in the US via connections to intrastate and interstate pipelines and internationally through the export of processed condensate.
BHP said it was committed to returning these net proceeds to shareholders, and will make a further announcement on Thursday as to the form and timing of distribution of the proceeds. BHP will also provide certain transitional services to BP as part of the transaction for up to nine months following completion.