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BHP Billiton Approves The North West Shelf Cossack, Wanaea, Lambert, Hermes Redevelopment

BHP Billiton today announced approval for the North West Shelf Cossack, Wanaea, Lambert, Hermes (CWLH) redevelopment project for a capital investment of US$245 million (BHP Billiton share).

The CWLH redevelopment project comprises the replacement of the existing Cossack Pioneer Floating Production Storage and Offtake (FPSO) vessel, selected refurbishment of existing subsea infrastructure and the existing riser turret mooring. It will also capture additional oil production from the Cossack, Wanaea, Lambert and Hermes fields located in approximately 75 to 135 metres (245 to 440 feet) of water, approximately 135 kilometres (84 miles) offshore north west Western Australia by extending existing field life and through tie-back of exploration opportunities.

It is expected the CWLH redevelopment project will be completed and fully operational by early 2011 calendar year. The Cossack Pioneer FPSO is to be replaced by the SBM owned “Okha” which is currently configured as a Floating, Storage and Offtake vessel and will require conversion to add topside production facilities.

BHP Billiton Petroleum Chief Executive J Michael Yeager said the fields, which commenced production more than a decade ago (Cossack and Wanaea production commenced 1995, Lambert and Hermes were later), have performed above expectations, and now have much longer field life than originally expected.

“We anticipate this project will generate over 10 million barrels of oil (BHP Billiton share) during its life and it will also extend the life of these fields beyond 2020. During the 2008 calendar year, BHP Billiton has approved the investment of over US$1.1 billion in the overall North West Shelf infrastructure with North Rankin B gas compression and now this project. North West Shelf is a world class asset and represents a significant part of Petroleum’s deep portfolio of growth projects that will carry us forward,” Mr Yeager said.

The five participants in the project are: Woodside Energy Ltd. (33.33 per cent and operator); BHP Billiton Petroleum (North West Shelf) Pty Ltd (16.67 per cent); BP Developments Australia Pty Ltd (16.67 per cent); Chevron Australia Pty Ltd (16.67 per cent) and Japan Australia LNG (MIMI) Pty Ltd (16.67 per cent).

This document contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, “expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements, contained in this document, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are uncertain and subject to risks. A multitude of factors can cause actual events to differ significantly from any anticipated development. Neither the Company nor any of its subsidiary undertakings nor any of its officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.