BHP Billiton lets contract for Macedon development

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Dec. 9 -- BHP Billiton has awarded to Oceaneering International the contract for umbilicals and distribution equipment for the $1.5 billion Macedon natural gas field development in retention lease WA-12-R off Western Australia.

Oceaneering will supply an integrated umbilical system comprising 100 km of steel tube umbilicals and associated distribution equipment, including termination assemblies and flying leads.

The umbilicals will be manufactured at Oceaneering’s plant in Rosyth, Scotland, where work will begin during second-quarter 2011.

Manufacture of the distribution hardware will be divided between the company’s facilities in Texas and Rosyth.

Macedon development involves four offshore production wells supplying a wet gas pipeline to an onshore gas treatment plant to be built at Ashburton North, 17 km southwest of Onslow on the Western Australian coast.

The sales gas will then be piped to the Dampier-Bunbury gas trunkline for sale into the state domestic grid.

The field is expected on stream in 2013 at rates of 200 MMcfd. The field has estimated recoverable reserves of 400-750 bcf of gas.

BHP is operator with a 71.43% interest. Apache Energy has 28.57%.

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