BHPB approves Pyrenees project offshore WA

BHP Billiton has announced approval of the Pyrenees project, located in licenc...

  BHP Billiton has announced approval of the Pyrenees project, located in licence block number WA-12-R in the Exmouth Sub-basin, off the North West Australian coast, with first production expected during the first half of calendar year 2010.Project costs for the Pyrenees development are approximately US$1.7b, of which BHP Billiton’s share is 71.43 percent (approximately US$1.2b).The expenditure includes the purchase of a floating production, storage and offloading vessel (FPSO) and the development of 13 subsea wells tied back to this facility. The field is estimated to have an economic life of 25 years and BHP Billiton is the operator. The other co-venturer in the project is Apache Corporation with a 28.57 percent interest.The Pyrenees fields of Crosby, Ravensworth and Stickle were discovered in WA-12-R in July 2003 and have estimated recoverable oil reserves in the range of 80-120 million barrels of oil. Water depth across the development area is between 170m and 250m.BHP Billiton Group President Energy, J. Michael Yeager said the Pyrenees development was a welcome expansion to BHP Billiton’s oil producing assets in Western Australia."The Pyrenees development presents another solid opportunity for the Company to commercialise reserves in the Exmouth Sub-basin, an important oil region in Australian waters," Mr Yeager said."Pyrenees is the second FPSO development we are undertaking in the region and builds on our knowledge and execution capability in Western Australia. In November 2005 we approved the development of the Stybarrow oil field located in the Exmouth Sub-basin, approximately 20km west of the Pyrenees development. Stybarrow start up is on schedule for the first quarter of calendar year 2008."