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BHP Billiton Plc - BHP Billiton to Develop Neptune Oil and Gas Field in Gulf of
Mexico
BHP Billiton Plc
Share code: BIL
Isin: GB0000566504
NEWS RELEASE
Date 30 June 2005
BHP BILLITON TO DEVELOP NEPTUNE
OIL AND GAS FIELD IN GULF OF MEXICO
BHP Billiton today announced that it has approved the capital expenditure for
its 35 percent share of the costs to develop the Neptune oil and gas field in
the Gulf of Mexico (GoM). The Neptune facility will have a design capacity to
produce up to 50,000 barrels of oil and 50 million cubic feet of gas per day
with gross costs for the development estimated at approximately US$850 million
(BHP Billiton share approximately US$300 million).
The Neptune field is located in the deepwater GoM approximately 120 miles from
the coast of Louisiana. The field comprises Atwater Blocks 573, 574, 575, 617,
and 618, and water depths here range from 4,200 feet to 6,500 feet. The
production facility will be located in approximately 4,250 feet of water.
`Neptune will be our first operated, deepwater standalone facility in the GoM
and represents a significant milestone towards building a core business in that
region,` explained Philip Aiken, Group President of Energy for BHP Billiton.
`This project will add to our expanding portfolio of producing assets in the
Gulf of Mexico. With Mad Dog, which came onstream this year; Atlantis, which
will start up in 2006, and now Neptune, BHP Billiton`s net production from the
Gulf of Mexico will exceed 100,000 barrels of oil equivalent (boe) per day by
the end of 2007.`
Recoverable reserves at the Neptune field are estimated by the Company in a
range from 100 to 150 million boe. A standalone, tension leg platform (TLP) has
been selected for the development. The proposed facilities, wells, and
completions are proven designs that have been successfully implemented in the
deepwater GoM.
First oil is expected by the end of calendar year 2007 with seven initial subsea
wells tying back to the TLP. The wells, subsea systems, flowlines, floating
systems, topsides and risers will be designed, procured, fabricated and operated
by BHP Billiton on behalf of the Neptune joint venture partners. The oil and
gas will be exported to shore via the existing Caesar and Cleopatra trunk lines.
BHP Billiton is the designated operator of the field with the other partners
being Marathon Oil Corp. (30 percent), Woodside Energy (USA) Inc., a subsidiary
of Woodside Petroleum Ltd. (20 percent); and Maxus (US) Exploration, a
subsidiary of Repsol YPF (15 percent).
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 Mobile: Relations
+61 417 031 653 Tel: +44 20 7802 4156 Mobile: +44 7769
email: 934 942
Jane.H.Belcher@bhpbilliton.com email: Mark.Lidiard@bhpbilliton.com
Tania Price, Media Relations Ariane Gentil, Media Relations
Tel: +61 3 9609 3815 Mobile: Tel: +44 20 7802 4177 Mobile: +44 78
+61 419 152 780 81 51 8715
email: email: Ariane.Gentil@bhpbilliton.com
Tania.Price@bhpbilliton.com
South Africa
United States Michael Campbell, Investor & Media
Tracey Whitehead, Investor & Relations
Media Relations Tel: +27 11 376 3360 Mobile: +27 82
Tel: US +1 713 599 6100 or UK 458 2587
+44 20 7802 4031 email:
Mobile: +44 7917 648 093 Michael.J.Campbell@bhpbilliton.com
email:
Tracey.Whitehead@bhpbilliton.com
Date: 30/06/2005 02:02:32 PM
Produced by the JSE SENS Department
