Melbourne

BHP Billiton Ltd, the biggest overseas investor in US shale, will cut the number of its rigs there by about 40 per cent as plunging petroleum prices add to concerns about lower iron ore earnings.

Drilling and development spending on US onshore oil and gas fell to US$1.9 billion in the six months to Dec 31 from US$2.1 billion a year ago, the Melbourne-based company said on Wednesday. BHP will cut the number of active rigs to 16 from 26 by July, it said.