BHP 'disappointed' with $2.84bn write off

Disappointed: BHP chairman Jac Nasser

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 03 August 2012 01:37 GMT

BHP Billiton said today it was "very disappointed" to have to write off US$2.84 billion from the value of its Fayetteville shale gas assets in the US due to low domestic gas prices.

The writedown has been expected by the market given the collapse in US gas prices since BHP bought the Fayetteville assets from Chesapeake for $5 billion.

BHP said the value of its shale liquids and gas assets acquired from Petrohawk for US$15 billion including debt is not affected.

The company's chairman Jac Nasser said it was "very disappointing that low US gas prices have impacted the carrying value of the Fayetteville assets".

Chief executive Marius Kloppers and Petroleum division chief Mike Yeager had advised they did not wish to be considered for bonuses this…

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