The hedge fund also opened the door for other ways to extract value from BHP's petroleum business.
Elliott has also unpicked much of BHP's rationale for rejecting its Shareholder Value Unlock Plan proposals, exposing flawed and misleading claims from BHP management on the supposed costs of proposed unification measures, created to defend an entrenched "do nothing" approach.
According to Macquarie Researchs price target of 1500 on the company's stock this indicates the broker now believes there is an increase of 26% from BHP Billiton PLC's current price of 1190.5. They are separate legal entities with different investor bases, but are managed as if they were one.
In an open letter to BHP management outlining its revised proposal, Elliott said there is "extremely broad and deep-rooted shareholder support" for an independent review of the petroleum arm of the company.
Mackenzie has previously said it is the wrong time for BHP to sell its USA petroleum assets, given oil prices are still relatively low at about $52 per barrel.
World's biggest miner BHP Billiton said on Tuesday it was in progress for further cost reductions and implementing technology programs to improve safety and unlock resource in a bid to grow value and improve returns.
Shortly following the release of the letter today, chief executive, Andrew Mackenzie, adrressed investors at a conference in Barcelona on thje group's plans to boost long-term shareholder value. "Our path is deliberate, with value and returns at the centre of everything we do", Mackenzie said.
"The current period of shareholder activism could result in a break-up and/or a significant adjustment of the company's structure", Citi said in a note this week.
BHP spent about $20 billion buying US shale assets in 2011, including $12 billion for Petrohawk Energy, which owned the Hawkville site, and $4.75 billion for Fayetteville Shale properties from Chesapeake Energy.
Earlier this month, federal Treasurer Scott Morrison threatened court action to prevent Elliott's original plan for BHP to have a primary London listing and its shares still traded on the ASX through CHESS Depository Interests.
An example would be International Consolidated Airline Group, which resulted from the 2010 merger of British Airways and Iberia.
Elliott said BHP's shares have underperformed its nearest peer, Rio Tinto, and the S&P/ASX 200 and the FTSE 100 indexes, over the past two to eight years. Integrated Investment Consultants LLC increased its position in BHP Billiton plc by 36.5% in the first quarter.
BHP is now in dispute with the Australian Taxation Office (ATO) over the amount of tax in connection with sales of Australia-sourced commodities through the company's entity in Singapore, BHP Billiton Marketing AG.