30th Jun 2005 12:46
BHP Billiton PLC30 June 2005 NEWS RELEASE Release Time IMMEDIATE Date 30 June 2005 Number 29/05 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 KingdomJane Belcher, Investor Relations Mark Lidiard, Investor & Media RelationsTel: +61 3 9609 3952 Tel: +44 20 7802 4156 Mobile: +61 417 031 653 Mobile: +44 7769 934 942email: [email protected] email: [email protected] Tania Price, Media Relations Ariane Gentil, Media RelationsTel: +61 3 9609 3815 Tel: +44 20 7802 4177 Mobile: +61 419 152 780 Mobile: +44 7881 518 715email: [email protected] email: [email protected] United States South AfricaTracey Whitehead, Investor & Media Michael Campbell, Investor & Media Relations Relations Tel: US +1 713 599 6100 or Tel: +27 11 376 3360 UK +44 20 7802 4031 Mobile: +27 82 458 2587Mobile: +44 7917 648 093 email: [email protected]: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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