BHP Billiton takes $2bn charge on US energy assets

Mining giant BHP Billiton has said it is taking a $2bn (£1.3bn) writedown on the value of its US energy business.

It said the majority of the charge related to its Hawkville gas field in South Texas, with the rest stemming from its deal to buy US firm Petrohawk Energy in 2011

BHP announced in January that it was cutting its shale operations by 40% because of falling oil prices.

It also took a $3.3bn writedown in 2012, blaming a drop in US gas prices.

"While the impairment of the Hawkville is disappointing, it does not reflect the quality of our broader onshore US business," said BHP's petroleum president Tim Cutt.

BHP said it expected to take an impairment charge of about $2bn post-tax, or $2.8bn pre-tax, in its 2015 financial year results.

The firm also said it planned to invest $1.6bn in its onshore US operations in the 2016 financial year.

BHP has bet heavily on shale, a type of rock that can yield gas and oil.

That investment has been hurt as oil prices have fallen, with the price of both Brent and US crude now below $60 a barrel, down nearly half since last summer.