BHP Billiton gets green light for Macedon gas development in W. Australia

BHP Billiton gets green light for Macedon gas development in W. Australia BHP Billiton has announced approval for development of the Macedon gas field in the Exmouth Sub-basin, Western Australia.

The Macedon Gas Development, to be operated by BHP Billiton, will commercialise natural gas from offshore production lease WA-42-L, located 100 kilometres west of Onslow. First production is expected during calendar year 2013. Recoverable reserves for the Macedon field are between 400 and 750 billion cubic feet of gas. Project costs will be approximately US$1.5 billion, of which BHP Billiton’s share will be 71.43 percent (approximately US$1,050 million). The balance will be invested by joint venture partner Apache Northwest with a 28.57 percent interest.

The Macedon project involves four offshore production wells supplying a wet gas pipeline to an onshore gas treatment plant to be constructed at Ashburton North, 17 kilometres south west of Onslow. A sales gas pipeline will be connected to the Dampier to Bunbury Natural Gas Pipeline for sale to the domestic gas market in Western Australia. The gas plant will have a design capacity of 200 million standard cubic feet per day.

J. Michael Yeager, Chief Executive BHP Billiton Petroleum said today that the Macedon project would be an important addition to the Company’s portfolio of Western Australian projects.

The Macedon Gas Development will build on BHP Billiton’s existing producing interests in the north west region of Australia including its operated Stybarrow and Pyrenees projects and non-operated North West Shelf Venture.