Woodside-BHP's $800m Stybarrow JV to go ahead

Woodside Petroleum Ltd and BHP Billiton Ltd have given the green light to the $800 million development of the jointly held Stybarrow oil field development north of Exmouth.

The Stybarrow project was one that Woodside was expected to bring on stream after an investor briefing last week in which it boosted its production forecast for the year and says its string of new projects are set to boost cash flow.

At that briefing, Woodside chief executive Don Voelte said the company now expected to produce at least 59 million barrels of oil equivalent (mmboe) for calendar 2005, up from the previous forecast of 58 mmboe.

this is a copy of today's announcement:

Woodside Energy Ltd., a wholly-owned subsidiary of Woodside Petroleum Ltd., has approved
capital expenditure of about US$300 million for its share of the Stybarrow oil field development, off
North West Cape in Western Australia.
Woodside has a 50% interest in Stybarrow, about 65km north-west of Exmouth. BHP Billiton holds
the remaining 50% share and is the operator.
First oil from Stybarrow, in permit WA-255-P(2), is planned for early 2008 with production capacity
of about 80,000 barrels per day.
Oil will be produced through a sub-sea development and processed and stored in a
disconnectable, new-build, double-hulled floating production storage and offtake facility that will be
provided through a service agreement.
Production from Stybarrow will boost Woodside oil production in the region, with the nearby Enfield
oil project planned to start production in late 2006.

this is BHP's press release and a profile of Stybarrow:

BHP Billiton today approved development of the Stybarrow oil field located in licence block number WA-255-P(2) in the Exmouth Sub-basin, approximately 65 kilometres from Exmouth, off the north west Australian coast.

At a water depth of approximately 825 metres it will be the deepest oil field development ever undertaken in Australia.

Project costs for Stybarrow are approximately US$600 million, of which BHP Billiton's share is 50% (approximately US$300 million). This expenditure includes the cost of field development. There is also a 10 year minimum service agreement with a Floating Production Storage and Offtake (FPSO) provider.

Discovered in February 2003, Stybarrow and the adjacent small oil rim of the Eskdale field have recoverable oil reserves estimated in a range of 60-90 million barrels of oil.

BHP Billiton Group President Energy, Philip Aiken, said the Stybarrow Development would expand BHP Billiton's producing assets in Western Australia.

"Stybarrow represents the first opportunity for BHP Billiton to commercialise reserves in the Exmouth Sub-basin which is increasing in importance as an oil province in Australian waters. Our focus in the region is in on seeking opportunities where discoveries can be appraised and rapidly advanced into developments," Mr Aiken said.

The Stybarrow project involves a subsea development and an FPSO facility which will be used to process, store and offload oil to export tankers. The vessel will be disconnectable, double-hulled and able to process approximately 80,000 barrels of liquids a day.

First production is expected during the first quarter of calendar year 2008. The estimated economic field life is 10 years.

The Stybarrow project has been subject to a comprehensive environmental impact assessment process that has involved extensive consultation with the local community and other key stakeholders.

BHP Billiton is the Operator (50%), with joint venture partner Woodside Energy Limited (50%).

STYBARROW
OIL FIELD DEVELOPMENT
EXMOUTH SUB-BASIN
OVERVIEW
- BHP Billiton has approved development of the Stybarrow oil field located in licence block number WA-255-P(2) in
the Exmouth Sub-basin, approximately 65 kilometres from Exmouth, off the north west Australian coast.
- Project costs for Stybarrow are approximately US$600 million, of which BHP Billiton's share is 50%
(approximately US$300 million). This expenditure includes the cost of field development. There is also a
10 year minimum service agreement with a Floating Production Storage and Offtake (FPSO) provider.
- The Stybarrow project involves a subsea development and an FPSO facility which will be used to process, store
and offload oil to export tankers. The vessel will be disconnectable, double hulled and be able to process
approximately 80,000 barrels of liquids a day.
- Discovered in February 2003, Stybarrow and the adjacent small oil rim of the Eskdale field have recoverable
oil reserves estimated in a range of 60-90 million barrels of oil.
- First production is expected during the first quarter of calendar year 2008. The estimated economic field life
is 10 years.
- BHP Billiton is the Operator (50%), with joint venture partner Woodside Energy Limited (50%).
- Water depth is approximately 825 metres, making it Australia's deepest oil field development.