BHP To Commit $25 Million To Development Of Boris Field, Gulf Of Mexico

BHP Billiton will commit US$25 Million for the development of oil and gas from the Boris field in the Central Gulf of Mexico. The field was discovered in October 2001 in Green Canyon Block 282, close to the producing Typhoon Field (ChevronTexaco 50%; BHP 50%). BHP Billiton holds a 50 per cent interest in Boris and is the designated operator for the block. Partners are ChevronTexaco and Noble Energy, Inc., each with a 25 per cent interest.

Boris is located in water depths of 2,400 feet, approximately five miles southeast of the Typhoon field (GC 236 and 237). The ChevronTexaco-operated Typhoon facility, which commenced oil and gas production in July 2001, will be used to process the production from Boris. Processing capacity on the Typhoon mini-TLP (nameplate capacity 40,000 barrels of oil per day) is available with only minimal modification.

Initial gross flow rates from the Boris field are expected to be in the range of 11,000 barrels of oil per day with a maximum of 18,000 barrels of oil per day. First oil expected by year-end 2002. Boris is subject to royalty relief, which applies under certain market conditions.

The Boris field will be developed using a subsea manifold distribution unit tied back via flowlines to the production facility on Typhoon. The subsea manifold's design can accommodate up to three wells, providing additional production infrastructure for other potential targets in the area.

"With first oil targeted within a year after discovery, Boris is on a world-class pacesetter schedule for deepwater developments," said Steve Bell, president of deepwater discovery and appraisal for BHP Billiton Petroleum. "Compared with the company's other discoveries in the Gulf of Mexico (Mad Dog, Atlantis and Typhoon), Boris would be classified as a 'small field' with gross estimated reserves in the range of 10 - 35 million barrels of oil equivalent (mmboe)(BHP Billiton share 5 - 17.5 mmboe).

"The reservoir quality and fluid characteristics of the Boris field are comparable to the main reservoir in Typhoon, which is producing above 20,000 bopd from the 237#2 well. Boris' hydrocarbon resources will add incremental volumes to production in the area and can be produced with very attractive economic returns," Bell added. "This development demonstrates the company's strategy to deliver value enhancements from existing and new assets by exploiting near field potential."

BHP Billiton holds interests in several leases in the Green Canyon Play Fairway, and exploration is underway to identify and drill prospects that can be efficiently tied back to the production hub established at Typhoon.

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