BHP Billiton moves closer to US shale sale or spin-off

BHP Billiton has hired external advisers to help prepare its sale or spin-off of it US shale oil unit, according to reports on Tuesday.

The Anglo-Australian giant, which in August gave into pressure from shareholders and said it would put its US onshore oil assets on the block, has appointed a quartet of investment banks to prepare for a sale in the new year, Reuters reported, citing sources.

BHP will make a decision on which course to take in the first quarter of 2018.

In the summer, management decided to exit the US shale oil business, possibly including via an initial public offer, following meetings between new chairman Ken Mackenzie and investor groups led by activist hedge fund Elliott Management.

In April, Elliott launched a drive to force BHP's board to divest units that did not meet its criteria for capital returns, alleging that missteps by management had destroyed roughly $40bn of shareholder value.

Analysts have suggested the company could free up billions of dollars by selling part or all of its petroleum business.