7th Jun 2006 17:42
BHP Billiton PLC07 June 2006 NEWS RELEASE Release Time IMMEDIATE 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 deepwaterGulf of Mexico has been approved for development. The Shenzi facility will havea design capacity to produce up to 100,000 barrels of oil and 50 million cubicfeet of gas per day. BHP Billiton is the operator of the field and has a 44 percent interest in the project. The other co-venturers in the project are BP (28per cent) and Hess Corporation (28 per cent). The Shenzi field is located in the deepwater Gulf of Mexico approximately 120miles 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 initialfield development will consist of seven producing wells, and the full fielddevelopment is expected to have up to 15 producing wells and possible waterinjection. Gross costs for the full field development through 2015 areestimated at approximately US$4.4 billion (BHP Billiton share is US$1.94billion). Recoverable reserves in the portion of the field covered by thisapproved expenditure will be assessed further during development drilling, butare currently estimated to be 350 - 400 million boe. Additional potentialreserves will be targeted for follow-up development. "Shenzi will be BHP Billiton's second operated, deepwater standalone facility inthe Gulf of Mexico," explained J. Michael Yeager, Group President Energy for BHPBilliton. "This project further demonstrates our transition to becoming asignificant operator and producer in the deepwater Gulf of Mexico. Shenzi joinsthe development of the Neptune field as a BHP Billiton operated project, andtogether with our interests in Atlantis and Mad Dog, significantly expands ourproduction base in the region." A standalone, tension leg platform (TLP) has been selected for the productionfacility. The proposed facilities, wells, and completions are proven designsthat have been successfully implemented in the deepwater Gulf of Mexico. Allmajor contracts are in place to commence project execution. First oil is expected by mid-year 2009 with seven initial pre-drilled subseaproduction wells being tied back to the TLP. Shenzi oil will be exported via anew-build pipeline to Ship Shoal 332, with the gas going via a new-build lateralinto 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 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 Relations Tel: +61 3 9609 3952 Mobile: Tel: +44 20 7802 4195 Mobile:+61 417 031 653 +44 7920 237 246 email: email:[email protected] [email protected] United States South AfricaTracey Whitehead, Investor & Alison Gilbert, InvestorMedia Relations Relations Tel: US +1 713 599 6100 or UK Tel: SA +27 11 376 2121 or UK +44+44 20 7802 4031 20 7802 4183Mobile: +44 7917 648 093 email:email: [email protected]@bhpbilliton.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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