Award of Block/Oil Discovery
BHP Billiton Limited
6 November 2001
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: 6 November 2001
Number: 28/01
BHP Billiton announces award of block 3(a) in Trinidad and TOBAGO
and oil discovery
BHP Billiton today announced that it has increased its acreage position
offshore Trinidad and Tobago, in an area that is becoming an increasingly
important exploration focus for the Group. It also announced results from a
recently drilled exploration well, Kiari-1, as well as encouraging indications
from a well currently being drilled, Canteen-1.
On 31 October 2001, Trinidad and Tobago's Ministry of Energy and Energy
Industries announced it had awarded exploration Block 3(a) to a consortium
that includes BHP Billiton, Talisman Energy, BG International, and
TotalFinaElf. The award is subject to final negotiation and execution of a
Production Sharing Contract with the Government of Trinidad and Tobago.
Comprising about 150,000 acres (237 square miles), Block 3(a) is located 25
miles off the northeastern coast of Trinidad in 100 to 300 feet of water. BHP
Billiton is the designated operator and holds a 30 per cent working interest.
Talisman Energy and BG International each hold a 30 per cent interest and
TotalFinaElf S.A. holds the remaining 10 per cent equity.
Block 3(a) will substantially enhance BHP Billiton's acreage position and is
located adjacent to Blocks 2(ab) and 2(c), where the Group has participated in
five exploration wells and announced three hydrocarbon discoveries in the past
two years.
The Angostura gas discovery (Block 2(c)) made in 1999, tested natural gas at a
stabilised flowrate of 30 million standard cubic feet per day (mmscfd) through
a 56/64 inch choke. The Aripo gas discovery (Block 2(c)) in 2000, tested
natural gas at a stabilised flow rate of 21.6 mmscfd through a 44/64 inch
choke (maximum 46.3 mmscfd via a 80/64 inch choke).
Another exploration well in Block 2(c), Kairi-1, encountered both oil and gas
in a hydrocarbon column that included 322 feet of net gas pay and 235 feet of
net oil pay, and tested 3,000 barrels of oil per day through a 38/64 inch
choke from 14 feet of perforations.
BHP Billiton is currently drilling Canteen-1 well on Block 2(c), located one
mile to the north of Kiari-1, using the jack-up rig Global Marine Labrador 1 .
The well was spudded on 23 October 2001 in a water depth of 164 feet and has
encountered hydrocarbon bearing sands, further supporting the oil and gas
potential found in Kiari-1.
Drilling is expected to be completed in the next few weeks, and the final
results will be used to evaluate the size of the discovery and development
planning options. BHP Billiton holds a 45 per cent operating interest in Block
2(c).
President and Chief Executive Officer BHP Billiton Petroleum Philip Aiken
said: 'Trinidad is quickly becoming another core growth area for the Group.
Award of Block 3(a) and the results from drilling on Block 2(c) provide
significant encouragement for potential oil and gas production.'
'We are creating shareholder value by our focussed exploration efforts and by
acquiring dominant acreage positions in targeted areas, thereby leveraging
proprietary knowledge and expertise in those plays.'
Ongoing evaluation work, including appraisal drilling, is currently being
conducted to determine the size of the hydrocarbon resource discovered in
Block 2(c). An exploratory drilling program will also be conducted in Block 3
(a) as part of the minimum work requirement of the Production Sharing
Contract.
* * *
Further information about the BHP Billiton Group can be found at: http://
www.bhpbilliton.com or contact:
Australia United Kingdom
Dr. Robert Porter, Investor Ariane Gentil, Manager
Relations Communications
Tel: +61 3 9609 3540 Tel: +44 20 7747 3977
Mobile: +61 419 587 456 Mobile: +44 7881 518 715
email: email:
Robert.Porter@bhpbilliton.com Ariane.Gentil@bhpbilliton.com
Michael Buzzard, Media Relations United States
Tel: +61 3 9609 3709 Francis McAllister, Investor Relations
Mobile:+61 417 914 103 Tel: +1 713 961 8625
email: Mobile: +1 713 480 3699
Michael.Buzzard@bhpbilliton.com email:
Francis.R.McAllister@bhpbilliton.com
South Africa
Michael Campbell, Investor & Media
Relations
Tel: +27 11 376 3360
Mobile: +27 82 458 2587
email:
Michael.J.Campbell@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration
Registered in Australia number 3196209
Registered Office: 600 Bourke Street Registered in England and Wales
Melbourne Victoria 3000 Registered Office: 1-3 Strand
Telephone +61 3 9609 3333 Facsimile +61 3 London WC2N 5HA United Kingdom
9609 3015 Telephone +44 20 7747 3800
Facsimile +44 20 7747 3900
The BHP Billiton Group is headquartered in Australia
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