Oil Field Development

Broken Hill Proprietary Co Ld
22 June 2000


                BHP Commits to Major Oil Development in Algeria

The Broken Hill Proprietary Company Ltd. (BHP) today announced it is to proceed
with the 300 million barrel (gross) ROD integrated oil field development in the
Berkine Basin of Algeria.  The development represents a significant value
creating addition to the BHP portfolio and is one of a number of greenfield and
brownfield projects the company expects to commit to over the coming year.

BHP's partners in the US$500 million development - the Algerian state oil
company SONATRACH and the Italian company AGIP Algeria Exploration BV, the
Algerian operating company of ENI SpA, the largest energy company in Italy -
have also sanctioned the project, which is now subject to formal gazettal by
the Algerian Government.

A total of five fields will be developed - ROD, SFNE, RERN, BSF and RDB - all
of which are located on exploration Blocks 401a / 402a (BHP 45% operator, AGIP
55%) in the Sahara Desert, some 800km south east of Algiers.

The largest of the fields, ROD, extends into the neighbouring Block 403
concession operated by AGIP and SONATRACH.  A Unitisation Agreement has
therefore been put in place to govern joint operatorship and commercial
arrangements for the development, giving BHP approximately 17% of overall
project reserves.  After grossing for Algerian taxes, BHP's net share is around
60 million barrels of the proven and probable recoverable hydrocarbon volumes.

The fields will be developed via a new dedicated processing train which will be
built at Agip and SONATRACH's existing BRN production facility on Block 403.
From there, oil will be exported via the established pipeline infrastructure to
terminals located on the Algeria coast, while the associated gas will be re-
injected underground.  BHP's share of the US$500 million development cost will
be around US$190 million.

First production from the fields is scheduled for the first half of 2003, with
a gross peak production rate of 80,000 barrels oil per day.   The development
and operations will be conducted by joint operating entities comprising BHP,
AGIP and SONATRACH.

Approval of the ROD integrated oil field development marks the culmination of a
four-year targeted exploration programme in the Berkine Basin and the end of
commercial negotiations with SONATRACH.

BHP Petroleum President, Philip Aiken, said today, -

'The ROD integrated development represents a major value generator for BHP into
the future and is one of a number of potential new projects likely to be
delivered from the company's portfolio of greenfield opportunities. As well as
demonstrating the value delivery of our focused exploration strategy, I believe
the go-ahead also signals the start of a new phase in our 11-year long
relationship with Algeria, SONATRACH and the Algerian Government.

'I am enormously encouraged by this important milestone and very much look
forward to strengthening our position in Algeria as we move ahead with other
opportunities in the country.'

For clarification please contact:

Christopher Huntley
Manager External Affairs
Phone:                             020 7802 7331
Mobile:                            0780 23 23 118