Deepwater O&G Dvlpmt Approved

Broken Hill Proprietary Co Ld
28 January 2000


BHP's First Deepwater Oil & Gas Development

The Broken Hill Proprietary Company Limited (BHP) today announced the approval
of the Typhoon oil and gas development in the Gulf of Mexico.

The field is located in 600 metres of water in Blocks 236 and 237 in the Green
Canyon play fairway, approximately 100 kilometres off the coast of Louisiana
in an area which has been actively explored and which has existing production
and pipeline infrastructure.

The field will be developed by means of subsea completion and tieback of four
existing appraisal wells and the construction and installation of a local host
facility using a mini tension leg platform (TLP).  Oil and gas export will be
by pipeline to existing markets.  

Peak production of 40,000 bpd and 60 mmscfd is expected after scheduled first
production in the third quarter of calendar year 2001 less than four years
from discovery. The commercial field life is expected to be between five and
eight years.

The total capital expenditure is A$192 million net to BHP.

The partners in the venture are BHP (50%) and Chevron (50%) Operator.

This represents BHP Petroleum's first commercial development in the Gulf of
Mexico and results from a strategic decision to target areas where the Company
could acquire a strategic advantage capable of being reflected in material
value contribution.

BHP has additional exploration potential in the Green Canyon area and is
progressing an appraisal program in the Atwater Valley area of the Gulf of
Mexico, with current activity centred on the drilling of Mad Dog -2 appraisal
well.

BHP Petroleum President, Philip Aiken said, 'The go-ahead for the Typhoon
project represents the first commercial development for BHP in the deepwater
and will provide an early contribution to cash flow and profitability from the
Company's highly prospective and significant acreage position in the Gulf of
Mexico.'

For clarification please contact:

Media Relations:       
              
Dr Malcolm Garratt       
Group Manager - External Relations Melbourne   
Phone:      [phone]       
Mobile:     [phone]       

Investor Relations:

Dr Robert Porter
Vice President Investor Relations - Melbourne
Phone:       [phone]
Mobile:      [phone]