BHP to Buy Chesapeake Shale Gas Assets for $4.75 Billion

BHP Billiton Ltd., the world’s biggest mining company, agreed to buy Chesapeake Energy Corp.’s Arkansas shale gas assets for $4.75 billion in cash, more than doubling its U.S. oil and gas reserves.

BHP will add more than 10 trillion cubic feet of gas resources through the purchase, J. Michael Yeager, chief executive officer of BHP’s petroleum division, said on a call with reporters today. The Fayetteville deal marks Melbourne-based BHP’s first foray into U.S. shale gas.