BHP Billiton's Macedon Gas Field to go ahead

Late last week, BHP Billiton announced approval for development of the Macedon gas field in the Exmouth Sub-basin, Western Australia.

The Macedon Gas Development, to be operated by BHP Billiton, will commercialise natural gas from offshore production lease WA-42-L, located 100 kilometres west of Onslow. First production is expected during calendar year 2013.

Recoverable reserves for the Macedon field are between 400 and 750 billion cubic feet of gas. Project costs will be approximately US$1.5 billion, of which BHP Billiton’s share will be 71.43 percent (approximately US$1,050 million). The balance will be invested by joint venture partner Apache Northwest with a 28.57 percent interest.

The Macedon project involves four offshore production wells supplying a wet gas pipeline to an onshore gas treatment plant to be constructed at Ashburton North, 17 kilometres south west of Onslow. A sales gas pipeline will be connected to the Dampier to Bunbury Natural Gas Pipeline for sale to the domestic gas market in Western Australia. The gas plant will have a design capacity of 200 million standard cubic feet per day.

Proposals to develop the project were subject to a comprehensive environmental assessment process that involved extensive consultation with the local community and other key stakeholders.

The Macedon Gas Development will build on BHP Billiton’s existing producing interests in the north west region of Australia including its operated Stybarrow and Pyrenees projects and non-operated North West Shelf Venture.

Whilst anticipated job numbers are yet to be determined, BHP Billiton has released more than 50 major work packages for tender, including civil earthworks, onshore pipeline construction and electrical and instrumentation works. We will keep you abreast of who is awarded which packages as they occur, which will in turn, alert you to where the job opportunities are and when.