BHP Closes Sale Of Onshore US Assets

(RTTNews) - BHP said it has 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 Plc (BP.L, BP_UN.TO, BP), for a gross consideration of US$10.5 billion.

BP said it paid one-half of the gross consideration at completion (less customary completion adjustments of US$0.2 billion), with the balance being payable in six equal instalments over a six month period, the first instalment to be paid one month after completion. Payment of the deferred consideration is not subject to any conditions.

BHP has completed the sale of its Fayetteville Onshore US gas assets for a consideration of US$0.3 billion.

Net proceeds (after tax and post customary transaction costs) of the sale of BHP's entire interests in the Eagle Ford, Haynesville, Permian and Fayetteville Onshore US assets are US$10.4 billion. BHP said it is committed to returning these net proceeds to shareholders, and will make a further announcement on 1 November 2018 as to the form and timing of distribution of the proceeds.

As part of the transaction, BHP will provide certain transitional services to BP for up to nine months following completion.