by Xinhua Financial News
Thursday, June 26, 2008

BHP Billiton and its joint venture partner Exxon Mobil Corp. are set to approve the A$1.5 billion ($1.43 billion) development of the Turrum gas field off Australia's southeast coast late next month, The Australian newspaper said on Thursday without citing sources.

The newspaper said the two companies are finalizing details of the Turrum phase 2 development, which has reserves of about 1 trillion cubic feet (tfc) of gas and 110 million barrels of oil and condensate.

It said first oil and condensate production from the field is expected between 2011 and 2012, with gas production to start after 2015 when an onshore gas plant is built.

Turrum is part of the Gippsland Basin joint venture in Australia's Bass Strait, in which the two companies have equal stakes.

The venture, which has operated for four decades, supplies more than a third of Australia's east coast gas market.

ExxonMobil said last year the field probably had a further 20 years of oil production.

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