Number 18/03

BHP Billiton today announced it had signed, together with the other participants in the North West Shelf (NWS) Venture, further agreements with a related entity of the China National Offshore Oil Corporation (CNOOC) with regard to the equity participation by CNOOC in the North West Shelf Project.  The agreements give effect to the key terms agreed with CNOOC in October 2002 and follow on from the sale and purchase agreements to supply gas to China’s Guangdong liquefied natural gas (LNG) project.

Under the equity agreements, CNOOC will purchase an interest in a new joint venture that is being established within the NWS Project to supply LNG to the Guangdong LNG Project in China. It will acquire title to a proportion of North West Shelf gas reserves and rights to process its gas and associated liquefied petroleum gas and condensate through North West Shelf Venture offshore and onshore infrastructure. CNOOC will participate with a 25% share in the new joint venture, the “China LNG Joint Venture” and each of the six original NWS participants will hold 12.5%.  

Subject to anticipated completion of regulatory and other approvals later this year, CNOOC, will pay each of the six NWS Venture participants about US$58 million for its interest in the NWS Project titles. This interest represents about 5.3% of current NWS Project gas reserves.

CNOOC will also pay a tariff to the NWS Venture participants for access to the processing infrastructure.

The transaction does not include equity in, or access to, oil reserves or oil production facilities.

Last October, Sale and Purchase Agreements were signed between the NWS Venture participants and the companies comprising the Guangdong LNG Project, including CNOOC, for the purchase and supply of approximately 3.3 million tonnes of LNG per year to Phase One of the project, China’s first LNG import project which will be located in the country’s fastest growing Province.

For further information contact:

Australia
Andrew Nairn, Investor Relations
Tel: +61 3 9609 3952  Mobile: +61 408 313 259
email: Andrew.W.Nairn@bhpbilliton.com


Tracey Whitehead, Media Relations
Tel: +61 3 9609 4202  Mobile: +61 419 404 978
email: Tracey.Whitehead@bhpbilliton.com


United Kingdom
Mark Lidiard, Investor & Media Relations
Tel: +44 20 7802 4156
email: Mark.Lidiard@bhpbilliton.com

Ariane Gentil, Media Relations
Tel: +44 20 7802 4177
email: Ariane.Gentil@bhpbilliton.com

United States
Francis McAllister, Investor Relations
Tel: +1 713 961 8625  Mobile: +1 713 480 3699
email: Francis.R.McAllister@bhpbilliton.com


South Africa
Michael Campbell, Investor & Media Relations
Tel: +27 11 376 3360  Mobile: +27 82 458 2587
email: Michael.J.Campbell@bhpbilliton.com