13/03/2009 - 13:06

BHP sells WA oil stakes to Inpex, Apache

13/03/2009 - 13:06

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BHP Billiton has sold its interest in two oil fields, near the Van Gogh oil field off the coast of Western Australia, to Japan's Inpex and Apache Energy.

BHP sells WA oil stakes to Inpex, Apache

BHP Billiton has sold its interest in two oil fields, near the Van Gogh oil field off the coast of Western Australia, to Japan's Inpex and Apache Energy.

BHP spokesperson Samantha Evans said the company had been in discussions to sell permits WA-35-L and WA-255-P Block 1801, known as the Coniston oil fields, for around a year.

She would not reveal the nature of the sale.

Inpex said in a statement that it will boost its stake in WA-35-L to 47.499 per cent from 28.5 per cent, while Apache will hold the balance, increasing its interest from 31.501 per cent.

For the WA-255-P Block 1801, Inpex agreed to buy a 23.7495 per cent interest while Apache bought BHP's remaining 26.2505 per cent stake.

Inpex and Apache together own the Van Gogh oil field and plan to start production in May.

 

 

Inpex's announcement is below:

 

INPEX CORPORATION is pleased to announce that, through its wholly-owned subsidiary INPEX Alpha, Ltd. (INPEX), it has agreed to acquire a 18.999% interest in the WA-35-L (excluding the Van Gogh Defined Area) and a 23.7495% interest in the WA-255-P block 1081 from BHP Billiton, both of which are located offshore Western Australia.

For the WA-35-L (excluding the Van Gogh Defined Area), the acquisition will increase the interest for INPEX from 28.500% to 47.499% and for Apache Northwest Pty. Ltd. (Apache) from 31.501% to 52.501% . For the WA-255-P block 1081, this acquisition will bring about ownership of a 23.7495% interest for INPEX and a 26.2505% interest for Apache (operator) with the remaining 50.0000% currently held by Woodside Energy Limited (Woodside).

The WA-35-L (excluding the Van Gogh Defined Area) covers both the Novara structure and the Coniston structure, in which oil was discovered by the Novara-1 well drilled in 1982 and by the Coniston-1 well drilled in 2000, respectively. The WA-255-P block 1081 covers the part of the Coniston structure. Further appraisal works including the drilling of appraisal wells are planned.

Depending on the results of such appraisal works, some synergy effects through the sharing of the production facilities with the Van Gogh Oil Field may be expected. The Van Gogh Oil Field is located in the Van Gogh Defined Area in the WA-35-L and is anticipated to start oil production in May 2009. The Van Gogh Defined Area is owned by INPEX (47.499%) and Apache (52.501%).

INPEX Alpha, Ltd. was established in 1989, and has been carrying out crude oil and gas production in the Griffin Fields in the WA-10-L. It has also conducting active exploration and production activities in Australian territorial waters, which include the Van Gogh Oil Field development and the Ravensworth Oil Field development.


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