13th Nov 2006 07:00
BHP Billiton PLC13 November 2006 13 November 2006 Number 30/06 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 todaythe purchase of the Genghis Khan oil and gas development from Anadarko PetroleumCorporation. The transaction includes rights for Green Canyon Blocks 652 and 608(certain rights only) in the deepwater Gulf of Mexico. The Genghis Khan fieldalready has two wells and development infrastructure in place. The field is partof 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 BHPBilliton at US$594 million. The sale will close following due diligence by the purchasers, resolution ofproduction handling agreements and other conditions, as well as any subsequentgovernment approvals that may be necessary. Genghis Khan was discovered in 2005 on GC 652 and includes estimated grosshydrocarbon reserves in the range from 65 to 170 million barrels of oilequivalent. It is located in water depths of approximately 4,300 feet. The fieldis located within 3 miles of the Marco Polo production platform, and developmentof the reserves at Genghis Khan will proceed through the connection of subseawells where the pipeline infrastructure is already in place. Development mayinclude up to seven wells to fully produce recoverable reserves from the field.First oil is expected in the middle of calendar year 2007 with continueddrilling to follow. "The acquisition of Genghis Khan provides BHP Billiton with a significantundeveloped asset in the deepwater Gulf of Mexico with near-term production thatwe will operate," explained J. Michael Yeager, Group President Energy for BHPBilliton. "Additionally, Genghis Khan being adjacent to our Shenzi oil and gasfield will allow us to benefit from developmental synergies, and will give usknowledge that will enhance the Shenzi development when it comes on-stream in2009." BHP Billiton holds a 44 percent interest and is the operator of the Shenzidevelopment. Hess Corporation and Repsol YPF each hold a 28 percent interest.Ownership and operating interests in Genghis Khan will be the same as Shenzionce the transaction is completed. As one of the largest leaseholders in theGulf of Mexico, BHP Billiton holds interests in more than 400 blocks. Further information on BHP Billiton can be found on our Internet site:www.bhpbilliton.com Australia United KingdomSamantha Evans, Media Relations Mark Lidiard, Investor & Media RelationsTel: +61 3 9609 2898 Mobile: +61 400 693 915 Tel: +44 20 7802 4156 Mobile: +44 7769 934 942email: [email protected] email: [email protected] Jane Belcher, Investor Relations Illtud Harri, Media RelationsTel: +61 3 9609 3952 Mobile: +61 417 031 653 Tel: +44 20 7802 4195 Mobile: +44 7920 237 246email: [email protected] email: [email protected] United States South AfricaTracey Whitehead, Investor & Media Relations Alison Gilbert, Investor RelationsTel: US +1 713 599 6100 or UK +44 20 7802 4031 Tel: SA +27 11 376 2121 or UK +44 20 7802 4183Mobile: +44 7917 648 093 email: [email protected]: [email protected] BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209Registered in Australia Registered in England and WalesRegistered Office: Level 27, 180 Lonsdale Street Melbourne Registered Office: Neathouse Place London SW1V 1BHVictoria 3000 United KingdomTelephone +61 1300 554 757 Facsimile +61 3 9609 3015 Telephone +44 20 7802 4000 Facsimile +44 20 7802 4111 The BHP Billiton Group is headquartered in Australia This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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