23.02.2011 • NewsBHPBHP Billitonshale gas

BHP Billiton Makes $4.75 Billion Push Into U.S. Shale Gas

BHP Billiton is buying shale gas assets from Chesapeake Energy Corp for $4.75 billion, pitting itself for the first time against oil giants and China in the battle for the fast-growing energy source in North America.

The deal marks the top global miner's first attempt at picking up assets since failing on three mega-deals over the past three years and sets it further apart from its mining peers with a big bet on the world's biggest gas market.

BHP said it was buying Chesapeake's holdings in Arkansas' Fayetteville shale natural gas field, put up for sale by the No.2 U.S. gas producer just two weeks ago to help trim a heavy debt load.

Chesapeake's move at the time sparked talk it was bowing to pressure from billionaire Carl Icahn, a 6 percent stakeholder.

Following a shale gas asset buying spree and in the face of persistently low natural gas prices, the company has said it wants to back away from gas and look for oil instead.

The deal pits BHP head-to-head against China in a race for global energy assets, following state-owned PetroChina's $5.5 billion agreement to buy shale gas stakes from Canada's largest gas producer, Encana Corp earlier this month.

China's CNOOC earlier bought about $2.4 billion worth of shale stakes from Chesapeake, while Indian energy companies including Reliance Industries have also been investing heavily in the burgeoning sector.

 

Interview

Specialty Chemicals in a Shifting World
Adapting to Tariffs and Strengthening Regional Networks

Specialty Chemicals in a Shifting World

Jennifer Abril, President & CEO of SOCMA, discusses the impact of new tariffs and the importance of regional supply networks in the specialty chemical industry.

Virtual Event

Digitalization in the Chemical Industry
CHEManager Spotlight

Digitalization in the Chemical Industry

Save the Date: October 22, 2025
The event will be promoted to a combined audience of over 100,000 professionals across Europe through the CHEManager and CITplus networks.

most read

Photo
22.04.2025 • News

BASF Divests Two Joint Ventures in China

BASF has divested its shares in the joint venture companies, BASF Markor Chemical Manufacturing (Xinjiang) Co., Ltd. and Markor Meiou Chemical (Xinjiang) Co., Ltd. in Korla, China, to Verde Chemical Singapore Pte. Ltd.

Photo
19.03.2025 • News

Arkema Launches Acrylic Acid Purification Project

Arkema has announced the launch of its Carat Project at its Carling site in France. This initiative aims to enhance the capabilities and sustainability of the facility, which specializes in producing acrylic monomers and superabsorbent polymers.