BHP Billiton JV buys Gulf of Mexico development
Global miner BHP Billiton Ltd./Plc (BHP.AX: Quote, Profile, Research) (BLT.L: Quote, Profile, Research) said on Monday its joint venture has acquired an oil and gas development in the Gulf of Mexico from Anadarko Petroleum Corp. (APC.N: Quote, Profile, Research) for US$1.35 billion.
BHP’s net share of the acquisition is at $594 million, the mining group said. The other partners in the joint venture are U.S. refiner Hess Corporation (HES.N: Quote, Profile, Research) and Spain’s Repsol YPF (REP.MC: Quote, Profile, Research).
The Genghis Khan oil and gas development, discovered in 2005, already has two oil wells and estimated gross hydrocarbon reserves of about 65-170 million barrels of oil equivalent.
BHP said the development may include up to seven wells and first oil is expected in mid 2007.
BHP holds 44 percent share in the venture while Hess Corporation and Repsol YPF each hold 28 percent
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