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BHP Billiton update on US Gulf of Mexico operations
BHP Billiton Plc
JSE Share codes: BIL
ISIN: GB0000566504
NEWS RELEASE
BHP BILLITON UPDATE ON US GULF OF MEXICO OPERATIONS
BHP Billiton"s petroleum exploration and production operations in the US Gulf of
Mexico (GoM) have recommenced following Hurricane Rita. After completing
necessary inspections, both the Mad Dog and Genesis fields have safely resumed
production. The West Cameron 76, Starlifter, Green Canyon 18-Ewing Bank 988,
and Green Canyon 60 fields are in various stages of start-up and are expected to
resume in the next few days and weeks. This schedule is dependent on the
resumption of third-party downstream infrastructure, including pipelines,
onshore terminals and other facilities.
BHP Billiton"s share of production from the GoM for the 12-month period ended
June 30, 2005 was approximately 25,000 barrels of oil equivalent per day
(boe/d). As of October 10, the company"s production level had returned to about
forty percent of this rate.
As previously disclosed, the Typhoon facility was heavily damaged by Hurricane
Rita. The timing of production resumption from the Typhoon and Boris oil and gas
fields is unclear. For the 12-month period ending June 30, 2005, 4.3 million
barrels of oil and 7.1 billion cubic feet of natural gas were produced through
the Typhoon facility (BHP Billiton share: equivalent to approximately 15,000
boe/d). In the current financial year, production through Typhoon was expected
to be less than 5 percent of the company"s total oil and gas production.
The operator of the Typhoon field (Chevron) has formed two teams; an
investigation team has been charged with determining why the facility was lost
and a restoration team will recommend how best to restore Typhoon-Boris
production. It is too early to speculate on the findings and recommendations
from either team. We expect the investigation team to take several weeks and
the restoration team to take several months to complete their work.
The company holds both property damage and business interruption insurance in
relation to the assets in the GoM. The likely recovery from insurance is not
known at this stage.
Among other activities, the company"s GoM exploration and development drilling
operations have resumed. As a result of Hurricanes Katrina and Rita, all well
schedules have been delayed by 4-6 weeks. The effect that these delays will have
on production in future years is difficult to assess at this time.
The company does not currently see any impact on the first-oil schedules for its
Atlantis or Neptune developments. The Atlantis field is the next BHP Billiton
development to come on-stream. This is still anticipated during the third
quarter of 2006. However, flow-on effects from further delays with third-party
service providers to other projects or unusually severe marine conditions over
the next 12 months cannot be ruled out.
For the current financial year, BHP Billiton"s net oil and gas production is
likely to be as much as 10 million boe lower than previous guidance.
Approximately 4.5 million boe of this is associated with GoM operations, which
assumes loss of production from Typhoon for the balance of the fiscal year.
Unplanned outages in Australia account for 1.5 million boe of lower production.
The balance relates to our Production Sharing and Risk Sharing Contracts,
whereby increasing oil prices reduce the company"s production share.
Further information on BHP Billiton can be found on our Internet site:
http://www.bhpbilliton.com
Australia United Kingdom
Jane Belcher, Investor Relations Mark Lidiard, Investor & Media
Tel: +61 3 9609 3952 Relations
Mobile: +61 417 031 653 Tel: +44 20 7802 4156
email: Jane.H.Belcher@bhpbilliton.com Mobile: +44 7769 934 942
email: Mark.Lidiard@bhpbilliton.com
Tania Price, Media Relations Ariane Gentil, Media Relations
Tel: +61 3 9609 3815 Tel: +44 20 7802 4177
Mobile: +61 419 152 780 Mobile: +44 7881 518 715
email: Tania.Price@bhpbilliton.com email: Ariane.Gentil@bhpbilliton.com
United States South Africa
Tracey Whitehead, Investor & Media Michael Campbell, Investor & Media
Relations Relations
Tel: +1 713 599 6100 Tel: +27 11 376 3360
or +44 20 7802 4031 Mobile: +27 82 458 2587
Mobile: +44 7917 648 093 email:
email: Tracey.Whitehead@bhpbilliton.com Michael.J.Campbell@bhpbilliton.com
13 October 2005
Date: 13/10/2005 09:29:09 AM Produced by the JSE SENS Department
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