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2-21-2018

(Bloomberg) -- BHP Billiton Ltd. is accelerating plans to exit its $10 billion U.S. shale unit, flagging that deals could be announced before the end of the year.

The company, which has opened a data room for the Fayetteville field and will open others before the end of March, expects initial bids for the assets in the June quarter, according to a statement Tuesday. As recently as November it had set out a less optimistic timeline, saying then it hoped to offload the operations within two years.

“We continue to progress a number of alternatives to exit our onshore U.S. assets for value,” BHP said. “We have commenced marketing each of the fields.” Transactions could be announced in the six months to Dec. 31.

BHP is prepared to offer the assets in as many as seven packages, including three in the prized Permian Basin, people with knowledge of the producer’s plans said this month. The company values the assets at $10 billion or more, though could consider a swap of onshore U.S. acreage for offshore wells in the Gulf of Mexico, according to the people.

 

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