Cash Payment to BHP in Liverpool Bay.MELBOURNE, Australia--(BUSINESS WIRE)--Dec. 11, 1998--The Broken Hill Proprietary Company Limited today announced it has reached agreement with PowerGen plc on a re-negotiation of the gas contractual arrangements for the Liverpool Bay Liverpool Bay is a bay of the Irish Sea between north-east Wales, Cheshire, Lancashire and Merseyside to the east of the Irish Sea. The bay is a classic example of a region of freshwater influence. The rivers Alt, Conwy, Dee and Mersey drain into the bay. development in the UK Irish Sea Irish Sea, arm of the Atlantic Ocean, c.40,000 sq mi (103,600 sq km), 130 mi (209 km) long and up to c.140 mi (230 km) wide, lying between Ireland and Great Britain. It is connected with the Atlantic by the North Channel and (on the south) by St. George's Channel. . The principal term of the agreement will result in the payment of UK(pound) 270 million cash to BHP by PowerGen, the sole purchaser of gas from Liverpool Bay, as consideration for reducing the base price of gas sold under the Gas Sales Agreement. The reduction, of around 35%, brings the gas price closer to current market rates. BHP Petroleum Great Britain Great Britain, officially United Kingdom of Great Britain and Northern Ireland, constitutional monarchy (2005 est. pop. 60,441,000), 94,226 sq mi (244,044 sq km), on the British Isles, off W Europe. The country is often referred to simply as Britain. plc owns a 46.1% operating interest in Liverpool Bay. LASMO (ULX ULX UltraLuminous X-Ray Source ULX Ultimate LAN Experience (gaming center) ) Limited and Monument (Liverpool Bay) Petroleum Limited, BHPP's co-venturers in the development, have agreed the same amendments to the terms of their own Gas Sales Agreements with PowerGen. The transaction marks further progress by BHP in its portfolio management programme, realising significant early value from the Liverpool Bay asset through the one-off cash payment, while maintaining a long term contract for the gas at market competitive rates. The payment represents full value for gas revenues forgone as a result of the price reduction and is not contingent on Adj. 1. contingent on - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent upon, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent the future performance of the fields. Proceeds from the transaction will be amortised over the life of the fields on a unit of production basis. BHP Petroleum and its Liverpool Bay co-venturers have been in discussions with PowerGen over an extended period in pursuit of an arrangement which meets the requirements of PowerGen to restructure the 1991 gas contract, whilst protecting BHP's shareholder value. The agreement is effective 1 October 1998, with the cash payment expected to be made early in January 1999. The Gas Contract relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Liverpool Bay was signed in August 1991, providing PowerGen with dedicated access to the gas contained within five Liverpool Bay fields on a life of field, take or pay basis. The initial price for the gas was fixed in 1991 and has been adjusted every quarter according to a predetermined pre·de·ter·mine v. pre·de·ter·mined, pre·de·ter·min·ing, pre·de·ter·mines v.tr. 1. To determine, decide, or establish in advance: inflation formula. The Liverpool Bay fields have estimated initial (P50) recoverable gas reserves of 1.2 trillion cubic feet of gas, in addition to more than 160 million barrels of oil. Gas production commenced in December 1995 and oil production followed one month later. Gas production from Liverpool Bay has averaged over 200 million standard cubic feet per day this calendar year-to-date. Liquids production is currently running at around 60,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. gross. Partners in the Liverpool Bay development are: BHP Petroleum Great Britain 46.1% (operator), LASMO (ULX) 25%, Monument (Liverpool Bay) Petroleum 20% and Centrica Resources 8.9%. |
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