BHP Billiton will try to sell the Arkansas gas assets that marked its first entry into the US shale industry in 2011.
The global resources group bought the Fayetteville assets from Chesapeake Energy for $US4.75 billion.
But, in a statement released ahead of an investor day in London overnight, it's declared it will put them on the auction block.
"As we look to improve the balance of liquids and gas across our petroleum portfolio, we have initiated the marketing of our Fayetteville acreage," chief executive Andrew Mackenzie said.
"However, we will only divest the field if it maximises value for shareholders."
The Fayetteville assets have performed poorly and their value was written off by $US2.8 billion in 2012.
That led to then chief executive Marius Kloppers and former petroleum head Michael Yeager voluntarily giving up that year's bonuses.
BHP still views its US shale move as a long-term positive that diversifies the business, with the Texas and Louisiana assets it bought through the $US15 billion takeover of Petrohawk Energy performing better.
Improvements in fracturing drilling techniques - or "fracking" - have sparked a shale boom in the US with companies exploiting previously uneconomic or inaccessible onshore oil and gas fields.
Mr Mackenzie says that BHP is prioritising its shale assets by focusing on those with a greater proportion of more lucrative liquids (oil) than dry gas, such as Fayetteville.
The Brent crude oil price currently is at about $US85 a barrel after spending most of the last three years above $US100. The gas price is below where it was when BHP entered the shale market.
"In the Eagle Ford and Permian (both Texas), we are forecasting liquids production of approximately 200,000 barrels per day by the 2017 financial year," he said.
"This is expected to generate significant value as investments in our liquids-rich onshore US wells typically generate returns of over 50 per cent."
RBC Capital Markets analysts said BHP had proven, during the investor day, that it had the balance sheet flexibility to maintain its dividend, despite falls in oil and iron ore prices and the looming demerger of some assets into its NewCo entity.
"We think statements from the investor day firmly put to bed BHP's ability to cover the dividend," RBC said in a statement.
BHP declared a final dividend in August of 62 US cents per share, up from 59 US cents, but shareholders had expected the company to announce a return of about $US1 billion in a share buyback or special dividend.
At 1100 AEDT on Tuesday, BHP shares were down 57.5 cents at $32.235.
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