6 March 2002
BHP BILLITON TO PROCEED WITH ZAMZAMA FIELD DEVELOPMENT
BHP Billiton today announced approval for the development of the Zamzama gas
field in southern Pakistan. The announcement follows the signing of separate
Gas Sales and Purchase Agreements and a Gas Pricing Agreement with the
Government of Pakistan, the Sui Southern Gas Company Limited and Sui
Northern Gas Pipelines Limited.
The agreements cover the supply of up to 320 million standard cubic feet per
day (MMcf/d) of gas over the expected field life of 20 years, commencing in
2003. The core area of the Zamzama field to be developed has estimated
proven and probable gross reserves of 1.7 trillion cubic feet (Tcf), of
which BHP Billiton's equity share is around 650 billion cubic feet (Bcf).
The Zamzama development will commercialise gas resources from the field that
were initially produced via an extended well test (EWT) production facility.
Capital expenditure for this phase of the project will be in the order of
US$100 million (BHP Billiton share US$40 million).
First production from the EWT commenced in March 2001, and at present the
field is producing up to 100 MMcf/d of gas, which is being supplied to the
Sui Southern Gas Company Limited under a 21-month contract.
President and CEO BHP Billiton Petroleum Philip Aiken said the successful
technical and commercial operation of the EWT was an important precursor to
the development of the field reserves.
"The success of the EWT has provided the impetus to develop further what is
a key asset in BHP Billiton's gas commercialisation strategy," he said.
"The expansion of the Zamzama field will provide long-term benefits to all
stakeholders and also will enable BHP Billiton to continue its positive
association with the people and Government of Pakistan."
The Zamzama field development will require two additional processing trains
which will be located on the existing EWT plant site, and the drilling of a
minimum of three development wells.  A stabilised condensate flow of 2,000
barrels per day will be exported by a small diameter pipeline to nearby
pipeline infrastructure.
The Zamzama field lies within the original Dadu Exploration Concession
awarded to BHP Billiton Petroleum in February 1995, located in the Sindh
Province of southern Pakistan (approximately 200 kilometres north east of
Karachi).  The field is a major resource, covering an area of about 120
square kilometres, and ranks fourth in terms of Pakistan's discovered gas
reserves.
BHP Petroleum (Pakistan) Pty Ltd has a 47.5 per cent interest in the Zamzama
field, with partners LASMO (MP) Ltd  (a wholly owned subsidiary of Eni
S.p.A) - 23.75 per cent, PKP Exploration Ltd (formerly Premier Exploration
Pakistan Ltd) - 23.75 per cent and Government Holdings (Private) Ltd - five
per cent.
Government Holdings has the right to acquire an additional 20 per cent
equity, following which revised interests would be: BHP Billiton - 38.5 per
cent, Government Holdings -       25 per cent; PKP Exploration - 18.75 per
cent and LASMO - 17.75 per cent.
Further information can be found on our Internet site:
http://www.bhpbilliton.com
Australia
Dr. Robert Porter, Investor    United Kingdom/South Africa
Relations                      Michael Campbell, Investor &
Tel: + 61 3 9609 3540          Media Relations
Mobile: +61 419 587 456        Tel: +27 11 376 3360
email:                         Mobile: +27 82 458 2587
Robert.Porter@bhpbilliton.com  email:
                               Michael.J.Campbell@bhpbilliton
Mandy Frostick, Media          .com
Relations
Tel: +61 3 9609 4157           Ariane Gentil, Manager
Mobile: +61 419 546 245        Communications
email:                         Tel: +44 20 7747 3977
Mandy.J.Frostick@bhpbilliton.  Mobile: + 44 7881 518 715
com                            email:
                               Ariane.Gentil@bhpbilliton.com
United States
Francis McAllister, Investor
Relations
Tel: +1 713 961 8625
Mobile: +1 713 480 3699
email:
Francis.R.McAllister@bhpbilli
ton.com
BHP Billiton Limited ABN 49 004  BHP Billiton Plc Registration
028 077                          number 3196209
Registered in Australia          Registered in England and Wales
Registered Office: 600 Bourke    Registered Office: 1-3 Strand
Street Melbourne Victoria 3000   London WC2N 5HA United Kingdom
Telephone +61 3 9609 3333        Telephone +44 20 7747 3800
Facsimile +61 3 9609 3015        Facsimile +44 20 7747 3900
The BHP Billiton Group is headquartered in Australia