BHP Billiton today announced approval for the construction of a fourth Bass
Strait gas pipeline from the Bream field into the BHP Billiton/Esso
Australia joint venture's Gippsland production network.
The new pipeline will allow the production of gas reserves currently being
re-injected into the Bream reservoir. It will also access and accelerate the
production of around 30 million barrels of hydrocarbon liquids (BHP Billiton
share 15 million barrels) over a 10-year period.
President and CEO BHP Billiton Petroleum Philip Aiken said: "The pipeline
will provide a significant enhancement to BHP Billiton/Esso Australia's
Gippsland gas supply system, allowing production of the Bream gas reserves
at a time when demand for Bass Strait gas is increasing.
"The investment is also consistent with BHP Billiton's strategy to maximise
shareholder value through incremental additions to existing assets."
The 46-km pipeline will run from the existing Bream A platform in Bass
Strait, cross the Gippsland coast near Paradise Beach, and continue a
further five kilometres underground to an existing pipeline upstream of the
joint venture's gas and crude oil processing plant at Longford.
Construction of the pipeline and the gas handling facilities on the existing
Bream A oil production platform is expected to commence in December 2001 at
a gross cost of around A$200 million (BHP Billiton share A$100 million).
First gas/liquids is expected to flow by mid 2003.
The joint venture also announced today that it has commenced the largest 3-D
seismic survey ever undertaken in Bass Strait.
The 3,900-square km survey will cover all of BHP Billiton/Esso Australia's
northern oil and gas fields in Bass Strait, and is designed to identify
hydrocarbon targets over a range of geological horizons.
It is expected the survey (gross cost approximately A$55 million) will
result in a new round of drilling activities in the basin that could add
materially to the joint venture's proven reserves.
BHP Billiton has a 50 percent interest in the Bass Strait oil and gas joint
venture with its partner Esso Australia (50 percent, operator).
                                   * * * *
Further news and information can be found on our Internet site:
www.bhpbilliton.com
Australia                      United Kingdom
Dr. Robert Porter, Investor    Marc Gonsalves, Investor
Relations                      Relations & Communications
Tel: + 61 3 9609 3540 Mobile:  Tel: +44 20 7747 3956
+61 419 587 456                Mobile: +44 7768 264 950
email:                         email:
Robert.Porter@bhpbilliton.com  Marc.Gonsalves@bhpbilliton.com
Mandy Frostick, Media          Ariane Gentil, Manager
Relations                      Communications
Tel: +61 3 9609 4157           Tel: +44 20 7747 3977
Mobile: +61 419 546 245        Mobile: + 44 7881 518 715
email:                         email:
Mandy.J.Frostick@bhpbilliton.  Ariane.Gentil@bhpbilliton.com
com
South Africa                   United States
Michael Campbell, Investor &   Francis McAllister, Investor
Media Relations                Relations
Tel: +27 11 376 3360           Tel: +1 713 961 8625
Mobile: +27 82 458 2587        Mobile: +1 713 480 3699
email:                         email:
Michael.J.Campbell@bhpbillito  Francis.R.McAllister@bhpbillit
n.com                          on.com