Appr Funding Angostura O&G
BHP Billiton Limited
12 March 2003
BHP Billiton Limited is issuing this announcement to fulfil disclosure
obligations arising from its secondary listing on the London Stock Exchange.
The text of this release is identical to that issued by BHP Billiton Plc
earlier.
Date 12 March 2003
Number 09/03
BHP Billiton Approves Funding for Phase 1 Development of the Greater Angostura
Oil and Gas Field
BHP Billiton today announced that it has committed up to US$327 million for the
first development phase of the Greater Angostura oil and gas field. Greater
Angostura is located in shallow waters (40 meters) in Block 2(c), approximately
40 kilometers off the northeast coast of Trinidad. Gross mid-case volumes are
450-million barrels of oil equivalent, which comprises 160 million barrels of
oil (mmbo) and 1.75 trillion cubic feet (TCF) of natural gas (BHP Billiton share
72 mmbo and 0.79 TCF).
Phase 1 covers the engineering, construction, and installation of production and
transportation facilities required to recover the oil reserves of the field. The
development consists of three satellite wellhead protector platforms (WPPs) that
will be connected via flowlines to a steel jacket central production platform
(CPP). The commercialisation of the gas resource is expected to occur as the
second phase, three to nine years following first oil, and will utilise Phase 1
infrastructure with secondary enhancements. The timing of the commencement of
gas sales will largely depend on reservoir performance and oil recovery
considerations.
Regulatory approvals from the Government of Trinidad and Tobago have been
received. The joint venture will be pursuing an aggressive schedule to achieve
first oil by the end of calendar year 2004, and the Greater Angostura Field has
an estimated production life for both oil and gas between 19 to 24 years.
'With our sanction of the Angostura project, Trinidad and Tobago will become a
core development area for BHP Billiton,' said Philip Aiken, President and CEO of
BHP Billiton Petroleum. 'Once production begins, Angostura will be one of the
company's largest operated assets. This represents a significant milestone in
our Petroleum strategy to build shareholder value by achieving material growth
through oil and gas exploration and production. We see further potential in this
offshore area and our exploration campaign will continue with further test
drilling this year in both Block 2(c) and the adjacent Block 3(a).'
Background
The CPP will have a nameplate production capacity for 100,000 barrels of oil per
day. Initially, produced gas will be re-injected to the reservoir to maintain
pressures and enhance oil recovery. Oil will be delivered via an 18-inch
pipeline to storage and marine loading facilities onshore for export to market.
BHP Billiton is the operator of Block 2(c) and holds a 45 percent working
interest in the Greater Angostura field. Other partners include TotalFinaElf
with a 30 percent interest and Talisman Energy with a 25 percent interest.
BHP Billiton's interest in offshore Trinidad began in 1996 and a gas
accumulation was discovered in 1999 with Angostura-1. The oil discovery was made
with the Kairi-1 well in 2001, and there have been a total of seven exploration/
appraisal wells drilled on Block 2(c).
BHP Billiton has further acreage interest in the area - in 2001 it was awarded a
30% interest and operatorship in the adjacent Block 3(a) together with BG and
Talisman, 30% each, and Total Fina Elf, 10%. Exploration drilling is planned for
later this calendar year.
Further information on BHP Billiton can be found on our Internet site: http://
www.bhpbilliton.com
Australia United Kingdom
Andrew Nairn, Investor Relations Mark Lidiard, Investor & Media Relations
Tel: +61 3 9609 3952 Mobile: +61 408 Tel: +44 20 7802 4156 Mobile: +44 7769 934 942
313 259 email: Mark.Lidiard@bhpbilliton.com
email: Andrew.W.Nairn@bhpbilliton.com
Tracey Whitehead, Media Relations Ariane Gentil, Media Relations
Tel: +61 3 9609 4202 Mobile: +61 419 Tel: +44 20 7802 4177
404 978 email: Ariane.Gentil@bhpbilliton.com
email: Tracey.Whitehead@bhpbilliton.com
United States South Africa
Francis McAllister, Investor Relations Michael Campbell, Investor & Media Relations
Tel: +1 713 961 8625 Mobile: +1 713 480 Tel: +27 11 376 3360 Mobile: +27 82 458 2587
3699 email: Michael.J.Campbell@bhpbilliton.com
email:
Francis.R.McAllister@bhpbilliton.com
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