A multi-billion dollar write-down on US shale gas assets has forced the Chief Executive of BHP Billiton to forgo his 2012 bonuses.
The FTSE 100 resources giant says it will have to take an eye-watering hit of $2.84bn in its full year results on a project in Fayetteville, Arkansas after falls in the price of domestic gas in the US.
BHP is also going to move its drilling away from "dry" gas fields, where extraction is more expensive, to more liquid rich fields, which are cheaper to drill.
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To make matters worse, BHP is also having to take a $450m impairment on its Nickel West site in Australia, bringing the total impairments in the full year results to $3.29bn.
Marius Kloppers, BHP's Chief Executive, and the head of the Petroleum division, Mike Yeagar, have "advised the remuneration committee that they do not wish to be considered for a bonus for the 2012 financial year."
Kloppers said: "The Fayetteville charge reflects the fall in United States domestic gas prices and the company's decision to adjust its development plans by shifting drilling from dry gas to the more liquids rich fields.
"While we have responded appropriately to the changed market conditions today's impairment is clearly disappointing."
BHP's Chairman, Jac Nasser said the board "respect and agree" with the two men's decision to not take a bonus.
The write-down in the value of shale gas assets follows similar moves recently by other resource companies. BP took a $2.1bn impairment charge earlier this week relating mainly to the value of its US gas shale assets.
BS
