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Petroleum industry

Phillips Petroleum Company Acquires BHP's Interest in Bayu-Undan Gas Field

Strategic Insights

— 1 min read

Phillips Petroleum Company (NYSE: P) has announced its acquisition of the Broken Hill Proprietary Co. Ltd.'s (BHP) interest in the Bayu-Undan gas/gas condensate field in the Timor Sea's Zone of Cooperation (ZOCA), as well as other properties in ZOCA and Australian Commonwealth waters. The acquisition supports Phillips' strategy to gain access to proven undeveloped reserves as a spearhead for growth, and will enable the company to move forward with plans to develop the Bayu-Undan field to supply Australian gas markets and international LNG markets. Phillips will acquire BHP's 42.42 percent interest in ZOCA block 91-12 (Undan), bringing the company's total interest in the Bayu-Undan field to 50.3 percent.

Key Takeaways:

  • Phillips will acquire BHP's 42.42% interest in ZOCA block 91-12 (Undan), which will increase their total interest in the Bayu-Undan field to 50.3%.
  • The acquisition includes BHP's interests in the Elang, Kakatua, and Kakatua North oil fields in ZOCA 91-12 (33,000 bopd gross production).
  • The sale package also includes permits for the Sunrise, Troubador, Loxton Shoals, Sunset, and Bard static gas resources.
  • Phillips will become the operator of the unitized Bayu-Undan field.
  • The acquisition is expected to add 98 million barrels of oil, condensate, and natural gas liquids reserves to Phillips' 1999 reserves.
  • Phillips is a fully integrated petroleum company with exploration and production, refining, marketing, chemicals, and plastics interests around the globe.
  • The company has 16,600 employees, $14.2 billion of assets, and generated $12 billion of revenues in 1998.

Statistics:

  • Phillips will acquire BHP's 42.42% interest in ZOCA block 91-12 (Undan) for an undisclosed price.
  • The Bayu-Undan field has estimated reserves of 98 million barrels of oil, condensate, and natural gas liquids.
  • The Elang, Kakatua, and Kakatua North oil fields produce a combined 33,000 bopd gross production.
  • Phillips has 16,600 employees worldwide.
  • The company has $14.2 billion of assets and generated $12 billion of revenues in 1998.
  • The acquisition is expected to support Phillips' strategy to gain access to proven undeveloped reserves as a spearhead for growth.

Sources:

  • Business Wire, April 13, 1999.

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