Paladin Resources unit to buy BHP's remaining share in Timor Sea fields

Nov. 15, 2004
BHP Billiton Ltd., Melbourne, has sold its last interests in the Timor Sea—25% of Corallina oil field and 36.6125% of Laminaria oil field—for $150 million to the wholly owned subsidiary of Paladin Resources PLC, London.

Rick Wilkinson
OGJ correspondent

MELBOURNE, Nov. 15 -- BHP Billiton Ltd., Melbourne, has sold its last interests in the Timor Sea—25% of Corallina oil field and 36.6125% of Laminaria oil field—for $150 million to the wholly owned subsidiary of Paladin Resources PLC, London.

Both fields are operated by Woodside Energy Ltd., Perth. Shell Development (Australia) Pty. Ltd., Melbourne, is the third partner. These two firms have preemptive rights on the sale, but so far there is no indication they will contest the transaction, which is to be finalized in early 2005.

Woodside discovered Laminaria field in 1994 as well as nearby, smaller Corallina field the following year. Both fields are about 550 km west of Darwin and are produced through the Northern Endeavour floating production, storage, and offloading vessel. Laminaria came on stream in late 1999 and Corallina in mid-2002.

The fields are in natural decline from peak production of 180,000 b/d of oil (reached in early 2000). This year they have produced at an average of 30,900 b/d.

BHP's said the fields are no longer core assets. BHP (then BHP Petroleum) began the modern petroleum era in the Timor Sea in the early 1980s with the discovery of Jabiru oil field. Until that point the only significant finds had been noncommercial gas at Petrel, Tern, and Sunrise-Troubadour fields and a small oil accumulation at Puffin field, all in the late 1960s and early 1970s.