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BIL
BIBLT
Bhp Billiton To Develop Shenzi Oil And Gasfield In Gulf Of Mexico
BHP Billiton Plc
Share code: BIL
Isin: GB0000566504
Date 7 June 2006
Number 20/06
BHP BILLITON TO DEVELOP SHENZI OIL AND GAS FIELD IN GULF OF MEXICO
BHP Billiton today announced that the Shenzi oil and gas field in the deepwater
Gulf of Mexico has been approved for development. The Shenzi facility will have
a design capacity to produce up to 100,000 barrels of oil and 50 million cubic
feet of gas per day. BHP Billiton is the operator of the field and has a 44 per
cent interest in the project. The other co-venturers in the project are BP (28
per cent) and Hess Corporation (28 per cent).
The Shenzi field is located in the deepwater Gulf of Mexico approximately 120
miles from the coast of Louisiana. The field comprises Green Canyon Blocks 609,
610, 653, and 654, and water depths are approximately 4,300 feet. The initial
field development will consist of seven producing wells, and the full field
development is expected to have up to 15 producing wells and possible water
injection. Gross costs for the full field development through 2015 are
estimated at approximately US$4.4 billion (BHP Billiton share is US$1.94
billion). Recoverable reserves in the portion of the field covered by this
approved expenditure will be assessed further during development drilling, but
are currently estimated to be 350 - 400 million boe. Additional potential
reserves will be targeted for follow-up development.
"Shenzi will be BHP Billiton"s second operated, deepwater standalone facility in
the Gulf of Mexico," explained J. Michael Yeager, Group President Energy for BHP
Billiton. "This project further demonstrates our transition to becoming a
significant operator and producer in the deepwater Gulf of Mexico. Shenzi joins
the development of the Neptune field as a BHP Billiton operated project, and
together with our interests in Atlantis and Mad Dog, significantly expands our
production base in the region."
A standalone, tension leg platform (TLP) has been selected for the production
facility. The proposed facilities, wells, and completions are proven designs
that have been successfully implemented in the deepwater Gulf of Mexico. All
major contracts are in place to commence project execution.
First oil is expected by mid-year 2009 with seven initial pre-drilled subsea
production wells being tied back to the TLP. Shenzi oil will be exported via a
new-build pipeline to Ship Shoal 332, with the gas going via a new-build lateral
into a connection in the Cleopatra trunk lines, then on to Ship Shoal 332.
Further information on BHP Billiton can be found on our Internet site:
www.bhpbilliton.com
Australia United Kingdom
Samantha Evans, Media Relations Mark Lidiard, Investor & Media
Tel: +61 3 9609 2898 Mobile: +61 Relations
400 693 915 Tel: +44 20 7802 4156 Mobile: +44
email: 7769 934 942
Samantha.Evans@bhpbilliton.com email: Mark.Lidiard@bhpbilliton.com
Jane Belcher, Investor Relations Illtud Harri, Media Relations
Tel: +61 3 9609 3952 Mobile: +61 Tel: +44 20 7802 4195 Mobile: +44
417 031 653 7920 237 246
email: email: Illtud.Harri@bhpbilliton.com
Jane.H.Belcher@bhpbilliton.com
United States South Africa
Tracey Whitehead, Investor & Media Alison Gilbert, Investor Relations
Relations Tel: SA +27 11 376 2121 or UK +44
Tel: US +1 713 599 6100 or UK +44 20 7802 4183
20 7802 4031 email:
Mobile: +44 7917 648 093 Alison.Gilbert@bhpbilliton.com
email:
Tracey.Whitehead@bhpbilliton.com
Date: 08/06/2006 07:48:44 AM Produced by the JSE SENS Department
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