BP to Pay $10.5 Billion for Most of BHP's U.S. Shale Assets

BP has acquired the majority of BHP's US onshore oil and gas assets in a $10.5 billion deal, marking BP's largest acquisition since 1999. This acquisition provides BP with significant acreage in the Permian Basin, a key area for US oil and gas production. The deal may shift BP's focus back towards oil production. For BHP, this deal, along with another smaller one, allows them to exit the shale sector, a move welcomed by investors like Elliot. BHP plans to return most of the proceeds to shareholders, with the deals expected to close by October. The future strategy for BHP remains a topic of interest.

What is the significance of BP's acquisition of BHP's US onshore oil and gas assets?

• It marks BP's first entry into the Permian Basin.

• It reduces BP's presence in the US market.

• It is BP's smallest acquisition since 1999.

• It focuses on renewable energy sources.

How might the acquisition affect BP's energy portfolio?

• It will increase BP's focus on gas production.

• It will shift BP's focus back towards oil production.

• It will have no impact on BP's energy portfolio.

• It will lead BP to exit the oil sector.

What was BHP's strategy regarding its shale assets?

• To invest more in shale technology.

• To exit the shale sector through sales.

• To maintain its current shale assets.

• To expand its shale operations.

How did activist investors like Elliot react to BHP's decision to sell its shale assets?

• They suggested buying more assets.

• They were indifferent to the sale.

• They supported the sale.

• They opposed the sale.

What is a potential outcome for BHP after the sale of its shale assets?

• Increased investment in shale.

• A shift in management strategy.

• A focus on expanding shale operations.

• A decrease in shareholder returns.