Key Developments: BHP Billiton Ltd (BHP.N)
3 Dec 2013
Latest Key Developments (Source: Significant Developments)
Otto Energy Ltd:Executes letter of intent with BHP Billiton Ltd's BHP Billiton Petroleum (Philippines) Corp (BHPB), proposing to terminate the farm-out agreement between the two parties over Service Contract 55 (SC55), offshore Philippines.Says the letter of intent contemplates the re-assignment of BHPB's 60% working interest to Otto, taking Otto's working interest to 93.18%, subject to approval of the re-assignment by the Philippines Department of Energy.Says uUpon approval of the re-assignment by the DOE, Otto will accept the re-assignment of BHPB's 60% working interest and BHPB will pay $3.0 mln to Otto.Says Otto undertakes to lodge a Sub-Phase four work program and budget with the DOE.Says BHPB will pay a further $24.5 mln to Otto upon drilling the first exploration well in SC55.Says BHPB has no enduring rights to any future exploration outcomes or obligations. Full Article
Reuters reported that BHP Billiton Ltd said it was still in talks to sell its stake in a iron ore deposit in Guinea, despite lengthy negotiations that have prompted questions over the potential for a deal. Mount Nimba - like other iron ore projects in Guinea including the giant Simandou deposit - has faced questions over the stability of the West African country and the possibility of exporting through neighbouring Liberia, which is vital to making mines profitable at current prices. It has also been unclear whether BHP would continue the talks, started under its previous management team, if buyer appetite eased off and at a time when iron ore prices have held up. Full Article
Business Standard reported BHP Billiton PLC has given up nine oil and gas exploration blocks in India due to its inability to carry out exploration operations there. According to local media, the Company is withdrawing from those blocks because of delays in clearances, but BHP would not confirm the reason for its decision to relinquish its interest. Full Article
Reuters reported that BHP Billiton Ltd was shutting oil and gas production at its two oil and gas platforms in the Gulf of Mexico as Tropical Storm Karen approached the U.S. Gulf Coast. The company also said it expected both facilities to be fully evacuated later on Thursday. BHP operates Shenzi, which can produce up to 120,000 barrels per day of oil and 50 million cubic feet per day of natural gas, and Neptune, which can produce up to 50,000 bpd of oil and 50 million cubic feet per day of gas. Full Article
BHP Billiton Ltd announced that it has priced a four tranche Global Bond under its debt shelf registration statement, which has been previously filed with the U.S. Securities and Exchange Commission. The Global Bond comprises USD500 million Senior Floating Rate Notes due 2016 paying interest at 3 month US Dollar LIBOR plus 25 basis points, USD500 million 2.050% Senior Notes due 2018, USD1,500 million 3.850% Senior Notes due 2023, and USD2,500 million 5.000% Senior Notes due 2043. The proceeds will be used for general corporate purposes. Full Article
Rio Tinto And BHP Billiton Ltd To Spend $3 Billion To Build New Seawater Desalination Plant At Escondida Mine In Chile-AAP
Australian Associated Press reported that Rio Tinto and BHP Billiton Ltd will spend USD3 billion (AUD3.26 billion) to build a new seawater desalination plant at the Escondida mine in Chile. Rio, which has a 30% stake in the mine, will contribute USD1.03 billion (AUD1.13 billion) and BHP Billiton, which has a 57% share and also operates the mine, will put in USD1.97 billion (AUD2.14 billion). The companies say the 2,500-litre-per-second facility will provide a sustainable supply of water for the new OGP1 copper concentrator approved in February 2012 to minimise Escondida's reliance on regional aquifers. Construction will start this month with commissioning scheduled for 2017. The project will include two pipelines, four high-pressure pump stations, a reservoir at the mine site and high voltage infrastructure to support the system. The remaining interests in the Escondida mine, located 3,100 metres above sea level and 170 kilometres southeast of the City of Antofagasta, are owned by JECO Corporation (10.0%) and JECO 2 Ltd (2.5%). Rio said its investment will be funded through the company's share of Escondida's cash flows. BHP gave no details on its funding source. Full Article
BHP Billiton Ltd Announces Extension Of Long Term Joint Venture Relationship With ITOCHU Corp And Mitsui & Co. Ltd.
BHP Billiton Ltd announced an extension of its long term joint venture relationship with ITOCHU Corp and Mitsui & Co. Ltd. Under the terms of the agreement, ITOCHU and Mitsui will invest approximately USD0.8 billion and USD0.7 billion respectively in shares and loans of BHP Iron Ore (Jimblebar) Pty Ltd, representing an 8% and 7% interest in the Jimblebar mining hub and resource. The consideration includes a share of capital costs associated with the Jimblebar Mine Expansion project incurred to date. The transaction is subject to Australian Foreign Investment Review Board approval and other customary conditions and is expected to be completed in the September 2013 quarter. ITOCHU and Mitsui collectively hold a 15% interest in BHP Billiton’s Western Australia Iron Ore current mine, rail and port infrastructure. This investment will align interests across the Western Australia Iron Ore supply chain and drive simplicity and flexibility. Full Article
Capstone Mining Corp. announced that it entered into an agreement with BHP Copper Inc., a subsidiary of BHP Billiton Ltd. (BHP Billiton), to purchase the Pinto Valley copper mining operation and the associated San Manuel Arizona Railroad Company in Arizona, USA for USD650 million. The Transaction has been granted approval to proceed by the U.S. Federal Trade Commission (FTC) under the Hart-Scott Rodino Antitrust Improvements Act. Full Article
BHP Billiton Ltd announced that it has completed the sale of its 8.33% interest in the East Browse Joint Venture and 20% interest in the West Browse Joint Venture, located offshore Western Australia, to PetroChina International Investment (Australia) Pty Ltd for USD1.63 billion plus customary purchase price adjustments as announced earlier. Full Article
The Wall Street Journal reported that BHP Billiton Ltd has ruled out further expansion of its coal mining business, instead flagging the possibility of more asset sales as it focuses on cutting costs to defend against a weakened outlook for the commodity. Full Article
- Devon Energy Corp will buy oil-producing assets in Texas for $6 billion and plans to sell or otherwise monetize some of its natural gas-heavy holdings in response to investor criticism about its lack of exposure to more profitable crude.