BHP Billiton Acquires Interests in 50 Blocks in Central Gulf of Mexico Lease Sale 185.Energy Editors/Business Editors HOUSTON--(BUSINESS WIRE)--March 20, 2003 BHP Billiton BHP Billiton is the world's largest mining company.[1] Its origin is in the 2001 merger of Australia's Broken Hill Proprietary Company (BHP) and the UK's Billiton, which has a South African background. The result is a dual-listed company. today announced that it was the apparent high bidder on 50 blocks in the Outer Continental Shelf In the federal United States, the Outer Continental Shelf (OCS) consists of the submerged lands, subsoil, and seabed, lying between the seaward extent of the States' jurisdiction and the seaward extent of Federal jurisdiction. , Central Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east Lease Sale 185. This sale was conducted by the Minerals Management Service (MMS (Multimedia Messaging Service) An enhanced transmission service that enables graphics, video clips and sound files to be transmitted via cellphones. Developed as part of the 3GPP project, MMS phones are generally backward compatible with SMS and EMS. ), a bureau of the U.S. Department of the Interior, on March 19, 2003. The company submitted bids on a total of 65 blocks, achieving a 77 percent success rate. Completion of the sale is expected within the next few months, pending bid review and approval by the MMS. BHP Billiton's winning bids, both the net amount in partnership arrangements and as a 100 percent interest-holder, are valued at approximately $12.2 million, or nearly $245,000 per block, net to BHP Billiton. The company submitted 29 bids on deepwater acreage, being the successful bidder on 17 blocks. These are primarily deep, subsalt prospects along the Atwater Foldbelt play fairway. BHP Billiton holds a 100 percent interest on 11 of these leases, while holding equity interests between 50 and 67 percent in the remaining six. All 17 deepwater blocks complement BHP Billiton's current leasehold positions in existing play fairways. In addition to play fairways where the company has already built a strategic acreage position, BHP Billiton also pursued new opportunities for natural gas discoveries in the expanding deep shelf gas play. In partnership with Newfield Exploration Company, BHP Billiton bid on 35 blocks, submitting successful bids on 33 blocks in the West Cameron, East Cameron, Vermilion vermilion, vivid red pigment of durable quality. It is a chemical compound of mercury and sulfur and is known as red sulfide of mercury; it was formerly obtained by grinding pure cinnabar but is now commonly prepared synthetically. and South Marsh Island protraction protraction /pro·trac·tion/ (pro-trak´shun) 1. drawing out or lengthening. 2. extension or protrusion. 3. areas. These are located in shallow waters, and BHP Billiton is the designated operator with a 55 percent working interest in each block. "Our geoscientists have identified several significant prospects closer to shore that are deep targets and tend to be gas prone," said Bernie Wirth, Vice President of Exploration and Appraisal for the Gulf of Mexico. "They are located in the middle of existing infrastructure close to the robust gas market of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , which can provide attractive margins with shorter cycle times than exploration in deeper waters." All of the blocks BHP Billiton successfully bid on in Lease Sale 185 are eligible for royalty relief on oil and natural gas production as outlined by the MMS. Further information can be found on our Internet site: http://www.bhpbilliton.com |
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