BHP Writes Down Billions

January 18, 2016 Elizabeth Alford

BHP Writes Down Assets

BHP Billiton Ltd., a major operator in the Eagle Ford, announced immediate plans to write down US$7.2 billion pretax charges on its U.S. shale value.

In a recent news release, BHP set in motion the latest in a string of impairment charges for the company, which will reduce its onshore U.S. net operating assets to approximately US$16 billion.

BPH is also reviewing it 2016 CAPEX for additional places to cut costs.

Although the company plans to pull back rigs, they will keep three rigs in the Black Hawk field in southern Texas' Eagle Ford region.

The U.S. Energy Information Administration (EIA) recently announced that the volumes from the seven major shale regions in the U.S. will drop by 116,000 barrels a day in February. The Eagle Ford Shale Play is predicted to take the biggest hit of all the shale plays and is expected to drop 72,000 barrels a day to 1.15 million, according to the EIA. The Bakken in North Dakota losing 24,000 barrels to 1.1 million.