04 July 2007

Aussie oil field approved

BHP Billiton announced today that it will be developed an oil field offshore western Australia.

Development cost is estimated at slightly less than US$2.0 billion. The field - called Pyrenees - holds an estimated 120 million barrels of recoverable oil. It will be developed using a floating production,storage and offloading vessel (FPSO). The field has an estimated lifespan of 25 years, based on production of 96K barrels per day.

Note that Pyrenees was discovered in 2003 and that with a development decision taken in 2007, the field will achieve first oil in 2010.

Time from discovery to production is seven years.