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BHP Billiton Plc - News Release
BHP Billiton Plc
JSE Share Code: BIL
ISIN: GB0000566504
BHP BILLITON SIGNS GAS SALE AND PURCHASE AGREEMENT WITH AGL
BHP Billiton, together with its joint venturer Esso Australia Resources Pty Ltd,
today announced the signing of a substantial gas sale and purchase agreement
with AGL Wholesale Gas Limited (AGL).
The agreement is for the sale and purchase of up to 983 petajoules (gross) of
Bass Strait gas to AGL over a period of up to 14 years from 2004 to 2017. First
gas sales are scheduled to commence on 1 January 2004.
"The deal is significant as it gives the joint venture a long-term relationship
with AGL and an expanded role in supplying gas to New South Wales where we
currently supply around 20 per cent of the gas market," said Philip Aiken,
President and Chief Executive Officer for BHP Billiton Petroleum.
It also involves one of the largest sales of Gippsland gas since long-term
supply arrangements were entered into with the Victorian Government in the late
1960s.
Currently, the majority of gas entering the South Eastern Australia gas market
is supplied under a long-term contract between BHP Billiton/Esso and the
previously State Government owned Gascor. This contract is due to expire towards
the end of the decade.
"The agreement is consistent with BHP Billiton"s gas marketing strategy which is
to increase our market diversification and secure new gas markets and volumes,"
Mr Aiken said.
In the 34 years since the BHP Billiton/Esso Bass Strait joint venture began
production in October 1969, more than 3.5 billion barrels of oil and 5 trillion
cubic feet of gas have been produced. Current production is around 120 thousand
barrels per day of crude and condensate (gross), and 570 million cubic feet per
day (gross) of gas.
BHP Billiton and Esso are also continuing with exploration and production
activity in the Gippsland Basin. In October the joint venture announced that it
is planning to commence what is expected to be the largest combined exploration
and production-drilling program in the Gippsland Basin since the 1980s.
BHP Billiton has a 50 percent interest in the Bass Strait oil and gas project
with joint venturer Esso Australia Resources Pty Ltd (50 percent, operator).
Further information on BHP Billiton can be found on our Internet site:
http://www.bhpbilliton.com
Australia United Kingdom
Andrew Nairn, Investor Relations Mark Lidiard, Investor & Media
Tel: +61 3 9609 3952 Relations
Mobile: +61 408 313 259 Tel: +44 20 7802 4156
email: Andrew.W.Nairn@bhpbilliton.com email: Mark.Lidiard@bhpbilliton.com
Tania Price, Media Relations
Tel: +61 3 9609 3815
Mobile: +61 419 152 780
email: Tania.Price@bhpbilliton.com
United States
Francis McAllister, Investor Relations
Tel: +1 713 961 8625
Mobile: +1 713 480 3699
email:
Francis.R.McAllister@bhpbilliton.com
23 December 2003
Date: 23/12/2003 08:04:05 AM Produced by the JSE SENS Department
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