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Gulf Of Mexico
BHP BILLITON PLC
NEWS RELEASE
3 May 2002
BHP BILLITON ADVANCES DEVELOPMENT OF ATLANTIS OIL AND GAS FIELD IN
GULF OF MEXICO
BHP Billiton today announced it had approved up to US$355 million to
progress the development of the Atlantis oil and gas field in the
Gulf of Mexico (GoM). BHP Billiton holds a 44 per cent equity
interest in the field. BP is the operator of the field and holds the
remaining 56 per cent interest. Studies conducted by the operator
estimate the Atlantis field's gross proven and probable reserves to
be 575 million barrels of oil equivalent (mmboe) (BHP Billiton share
222 mmboe after royalties of 12.5%), making it the third largest
field in the Gulf of Mexico deepwater.
This capital commitment will allow completion of front-end
engineering and design work (FEED), progression into detailed
engineering and design, purchase of long-lead items and most major
equipment and placing major facility fabrication contracts. Full
project approval is expected later this year on completion of the
final capital cost estimate and project schedule, which will be
derived from the FEED studies. The gross capital cost is expected to
be in excess of US$2 billion (BHP Billiton share approximately US$1
billion).
This commitment is a major step in the project development and aligns
with the operator's forward project implementation schedule and
funding requirements. The project has been evaluated and approved
through the BHP Billiton internal capital assessment, technical and
commercial evaluation and risk management processes. It represents a
robust, major deepwater development, with significant value potential
for BHP Billiton.
Located in water depths of 4400 - 7100 feet, Atlantis will be
developed using a moored semi-submersible production facility with a
gross design capacity of around 150,000 barrels of oil per day (bopd)
and 180 million standard cubic feet of gas per day (mmscfd). The
field will also have a separate semi-submersible drilling unit
dedicated to development.
The Atlantis field is located in the Atwater Foldbelt, 125 miles
south of New Orleans in the vicinity of Green Canyon Block 743,
comprising seven blocks in the area. Oil and gas produced at
Atlantis will be transported to a platform at Ship Shoal Block 332 by
the Caesar and Cleopatra pipelines, in which earlier this year BHP
Billiton acquired a 25 per cent and 22 per cent interest,
respectively. From there, oil and gas can be transported to markets
in Texas and Louisiana.
President and CEO of BHP Billiton Petroleum Philip Aiken said: "The
commitment to the Atlantis development marks another landmark in the
Group's focused deepwater exploration strategy, which continues to
deliver value to the company and its shareholders. The completion of
the design work later this year and the procurement of long lead time
items will maintain our first production target of calendar 2005.
"The reserves estimate indicates that this is a major oil field
development, the third largest deepwater field in the Gulf. It is the
second that BHP Billiton will commercialise in the Atwater Foldbelt,
following the development decision on Mad Dog earlier this year," Mr
Aiken said. "When these two developments come on-stream they should
provide BHP Billiton with working interest production of
approximately 90, 000 barrels of oil per day and 90 mmcfd of gas.
There is also additional upside potential within the Atlantis field
and other nearfield opportunities."
Background
The Atlantis field was discovered in September 1998 in 4,400 feet of
water with the Atlantis-1 well drilled in Green Canyon Block 699.
Further appraisal wells were drilled in 3Q 2000 (Atlantis 2 and
sidetrack) and 3Q 2001 (Atlantis 3 and sidetrack) The accumulation
encompasses seven blocks in the southeast portion of the Green
Canyon Protraction area.
Further information can be found on our Internet site:
http://www.bhpbilliton.com.
Australia United Kingdom/South Africa
Dr. Robert Porter, Investor Mark Lidiard, Investor & Media
Relations Relations
Tel: + 61 3 9609 3540 Tel: +44 20 7747 3956
Mobile: +61 419 587 456 email:
email: Mark.T.Lidiard@bhpbilliton.com
Robert.Porter@bhpbilliton.com
Mandy Frostick, Media Relations Ariane Gentil, Manager
Tel: +61 3 9609 4157 Communications
Mobile: +61 419 546 245 Tel: +44 20 7747 3977
email: Mobile: + 44 7881 518 715
Mandy.J.Frostick@bhpbilliton.com email:
Ariane.Gentil@bhpbilliton.com
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