|
BIL
BIBLT
Bhp Billiton Plc :Bhp Billiton Plc and partners acquire Genghis Khan oil and
gas development in Deepwater Gulf Of Mexico
Bhp Billiton Plc
Share Code: BIL
ISIN: GB0000566504
BHP BILLITON AND PARTNERS ACQUIRE GENGHIS KHAN OIL AND GAS DEVELOPMENT IN
DEEPWATER GULF OF MEXICO
BHP Billiton, with co-venturers Hess Corporation and Repsol YPF, announced
today the purchase of the Genghis Khan oil and gas development from Anadarko
Petroleum Corporation. The transaction includes rights for Green Canyon
Blocks 652 and 608 (certain rights only) in the deepwater Gulf of Mexico. The
Genghis Khan field already has two wells and development infrastructure in
place. The field is part of the same geological structure as the recently
sanctioned Shenzi project. Gross costs for the transaction are US$1.35
billion, with the net share to BHP Billiton at US$594 million.
The sale will close following due diligence by the purchasers, resolution of
production handling agreements and other conditions, as well as any subsequent
government approvals that may be necessary.
Genghis Khan was discovered in 2005 on GC 652 and includes estimated gross
hydrocarbon reserves in the range from 65 to 170 million barrels of oil
equivalent. It is located in water depths of approximately 4,300 feet. The
field is located within 3 miles of the Marco Polo production platform, and
development of the reserves at Genghis Khan will proceed through the
connection of subsea wells where the pipeline infrastructure is already in
place. Development may include up to seven wells to fully produce recoverable
reserves from the field. First oil is expected in the middle of calendar year
2007 with continued drilling to follow.
"The acquisition of Genghis Khan provides BHP Billiton with a significant
undeveloped asset in the deepwater Gulf of Mexico with near-term production
that we will operate," explained J. Michael Yeager, Group President Energy for
BHP Billiton. "Additionally, Genghis Khan being adjacent to our Shenzi oil
and gas field will allow us to benefit from developmental synergies, and will
give us knowledge that will enhance the Shenzi development when it comes on-
stream in 2009."
BHP Billiton holds a 44 percent interest and is the operator of the Shenzi
development. Hess Corporation and Repsol YPF each hold a 28 percent interest.
Ownership and operating interests in Genghis Khan will be the same as Shenzi
once the transaction is completed. As one of the largest leaseholders in the
Gulf of Mexico, BHP Billiton holds interests in more than 400 blocks.
13 November 2006
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: +61 400 Relations
693 915 Tel: +44 20 7802 4156 Mobile: +44
email:Samantha.Evans@bhpbilliton.com 7769 934 942
email: Mark.Lidiard@bhpbilliton.com
Jane Belcher, Investor Relations Illtud Harri, Media Relations
Tel: +61 3 9609 3952 Mobile: +61 417 Tel: +44 20 7802 4195 Mobile: +44
031 653 7920 237 246
email:Jane.H.Belcher@bhpbilliton.com email: Illtud.Harri@bhpbilliton.com
United States South Africa
Tracey Whitehead, Investor & Media Alison Gilbert, Investor Relations
Relations Tel: SA +27 11 376 2121 or UK +44 20
Tel: US +1 713 599 6100 or UK +44 20 7802 4183
7802 4031 email: Alison.Gilbert@bhpbilliton.com
Mobile: +44 7917 648 093
email:Tracey.Whitehead@bhpbilliton.com
Date: 13/11/2006 07:19:07 AM Produced by the JSE SENS Department
|
|
