Disposal, etc

Broken Hill Proprietary Co Ld
10 December 1999


                     BHP DIVESTMENT OF PNG OIL & GAS ASSETS

The Broken Hill Proprietary Company Limited (BHP) today announced the sale of
its oil and gas interests in Papua New Guinea to Orogen Minerals Ltd for
US$130 million (A$200million), with a further US$10 to 15 million to be
received in the event of future development of the gas resources. The Company
expects to record an abnormal profit of approximately A$70 million as a result
of this transaction.

The sale marks a total withdrawal by BHP from its oil and gas assets in Papua
New Guinea and includes BHP's interests in the Kutubu (PDL-2), Gobe (PDL-4)
and Moran (PDL -2) oil producing fields and other holdings in pipeline
licences PL-2 and PL-3, retention leases APRL - 2 and APRL -3 (under
applications) and exploration licence PPL-161. 

The transaction forms part of the BHP's portfolio management activities
designed to generate value through the active management of the Company's
assets. It also marks a further stage in BHP Petroleum's efforts to
concentrate its activities around focussed niche strategies. 

President BHP Petroleum Philip Aiken said: 'The Papua New Guinea oil and gas 
properties represent high quality assets.  However, in the context of our
broader strategic priorities, and given the Company's relatively low equity
position, it was appropriate to extract greater value from these assets
through divestment.'


For more information:

Media Relations:          Mandy Frostick, Manager Media Relations
                          BHP Group - Melbourne
                          Tel:    [phone]

                          Dr Malcolm Garratt, Manager External Affairs
                          BHP Petroleum - Melbourne
                          Tel:    [phone]

Investor Relations:       Dr Robert Porter, Vice President Investor Relations
                          BHP Group - Melbourne
                          Tel:    [phone]


                                  LICENCE INTERESTS


PDL-2 Kutubu, Moran (Unit)                     PDL-4 Gobe/SE Gobe (Unit)
BHP                             9.687500       BHP                   9.687500 
Chevron (Operator)             19.375000       Chevron (Operator)   19.375000
Mitsubishi                      6.781250       Mitsubishi            6.781250
Mobil                          14.518075       Mobil                14.518075
Oil Search                     27.138175       Oil Search           27.138175
Orogen                         15.750000       Orogen               20.500000
PRK                             6.750000       PRG                   2.000000
       
       
PDL-161 Exploration                            APRL-2 Retention Lease        
BHP                            12.5000         BHP                   4.0000
Chevron (Operator)             25.0000         Chevron (Operator)   21.5000
Mitsubishi                      8.7500         Esso                 28.0100
Mobil                          18.7330         Mitsubishi           12.5000
Oil Search                     35.0170         Mobil                27.9798   
                                               Oil Search            6.0102

       
APRL-3 Retention Lease                         PL-2 Kutubu Pipeline
BHP                             7.5000         BHP                   9.6875
Chevron (Operator)             25.0000         Chevron (Operator)   19.3750
Esso                           21.0100         Mitsubishi            6.7812
Mitsubishi                     12.5000         Mobil                14.5181
Mobil                          27.9798         Oil Search           27.1382
Oil Search                      6.0102         Orogen               15.7500
                                               PRK                   6.7500
       
       
PL-3 Gobe Pipeline              
BHP                            7.507813
Chevron (Operator)            15.015624
Cue                            1.220625
Mitsubishi                     5.255468
Mobil                         11.251509
Mountains West                 0.435938
Oil Search                    24.519585
Orogen                        20.500000
PRG                            2.000000
Santos                         3.487500
SHP                            8.805938       
       
                     

 FACILITY DETAILS

Central processing facilities for stabilisation of oil.  The facilities are 
connected via the 270 km Kutubu export pipeline to the Kumul Marine terminal
for the export of the oil.


DISCOVERY

       Kutubu                             1986
       SE Gobe                            1991
       Gobe Main                          1993
       Moran                              1996


FIRST PRODUCTION

       Kutubu                             1991
       Gobe Main / SE Gobe                1998
       Moran                              1998


PROVEN REMAINING BOOKED RESERVES (BHPshare)

       Kutubu                             4.43 mmbbls
       Gobe Main / Gobe 2 / SE Gobe       2.56 mmbbls
       Moran                              1.7 mmbbls
       Total                              8.69 mmbbls


CURRENT OIL PRODUCTION FROM PNG

       Total                             83,000 bblpd
       BHP Share                          7,200 bblpd