Offshore staff

NEW YORK -- BHP Billiton, with co-venturers Hess Corp. and Repsol YPF, have purchased the Genghis Khan oil and gas development from Anadarko Petroleum Corp. The transaction includes certain rights for Green Canyon blocks 652 and 608 in the deepwater Gulf of Mexico. Two wells and a development structure are already in place on the Genghis Khan field, which is part of the same geological structure as the recently sanctioned Shenzi project.

Discovered in 2005, Genghis Khan includes estimated gross hydrocarbon reserves in the 65 -70 MMboe range. It is 4,300 ft. water depth and lies within 3 mi. of the Marco Polo production platform. Development of Genghis Khan reserves will proceed through the connection of subsea wells where the pipeline infrastructure is already in place. Development could include up to seven wells to fully produce recoverable reserves. First oil is expected in the middle of 2007, with continued drilling to follow.

"The acquisition of Genghis Khan provides BHP Billiton with a significant undeveloped asset in the deepwater Gulf of Mexico with near-term production that we will operate," said J. Michael Yeager, group president energy for BHP Billiton."The location of Genghis Khan adjacent to the Shenzi oil and gas field will allow the company to benefit from developmental synergies, and will provide knowledge that will enhance the Shenzi development when it comes onstream in 2009."

BHP Billiton operates Shenzi with 44% interest. Hess and Repsol YPF each hold 28% interest. Ownership and operating interests in Genghis Khan will be the same as Shenzi when the transaction is complete.

11-13-06