Minerva Gas Field Development

BHP Billiton Limited
17 May 2002

     BHP Billiton Limited is issuing this announcement to fulfil disclosure
  obligations arising from its secondary listing on the London Stock Exchange.

    The text of this release is identical to that issued by BHP Billiton Plc
                                    earlier.

 17 May 2002
Number: 30/02

             BHP BILLITON APPROVES MINERVA GAS DEVELOPMENT IN VICTORIA


BHP Billiton today announced approval for development of the Minerva gas field
in the offshore Otway Basin, Victoria, Australia.

The majority of the Minerva gas will be sold under contract into South Australia
via a new pipeline infrastructure link which will connect the Victorian and
South Australian principal gas transmission systems. The sale underpins BHP
Billiton's strategy to sell gas from Victoria into four eastern states markets
as well as opening an additional gas supply source.

The Minerva field development is a greenfield project that will commercialise an
intermediate-sized gas resource and provide a robust economic return. Capital
expenditure for the development will be around US$137 million (BHP Billiton
share US$123 million).

Minerva is a natural gas field with a small amount of liquid condensate. The
field has an expected life of 10 years and contains estimated proven and
probable gas reserves of 301 billion cubic feet (Bcf) of gas (BHP Billiton share
271 Bcf). It also contains 1.24 million barrels of liquids (BHP Billiton share
1.1 million barrels).

The Minerva development involves the drilling and installation of two subsea
well completions in 60 metres of water, approximately 10 kilometres offshore
from the township of Port Campbell. Construction will commence during 2002, with
first gas expected in the first quarter of 2004.

The project was subject to a comprehensive environmental impact assessment
process that involved extensive consultation with the local community and other
key stakeholders. Both State and Federal Government Ministerial assessments and
approvals have been granted for the development to proceed.

A single flowline will transport the gas to the coast, through a subterranean
shore crossing to an onshore gas processing facility where liquids will be
removed prior to exporting the gas to South Australia.

The gas plant will have a gross design production capacity of 150 terajoules of
gas per day (TJ/d) (BHP Billiton share 135 TJ/d). Approximately 600 barrels
(gross) of stabilised condensate will also be produced per day at initial gas
sales rates.

In March 2002 BHP Billiton signed a take or pay Gas Sales Agreement with Pelican
Point Power Limited (a wholly owned subsidiary of International Power plc) for
the provision of Minerva gas (at an initial average rate of approximately 115
TJ/d) over a 10 year period into a greenfield 680 kilometre pipeline terminating
in Adelaide.
    Volumes in the Gas Sales Agreement will underwrite the Minerva development with
up to 90 per cent of BHP Billiton's share of reserves being contracted. The
remainder of the gas will be sold in the South East Australian market as demand
dictates.

President and CEO BHP Billiton Petroleum Philip Aiken said the development of
the Minerva gas field is part of the Group's focus on gas commercialisation and
represents a major element in BHP Billiton's Eastern Gas Strategy.

'The development of the Minerva field will assist us in building on the large
gas market share that the Group has developed in Victoria over the past 30 years
by enabling us to expand into other south eastern Australian states,' he said.

BHP Billiton has made significant progress developing gas markets in New South
Wales and Tasmania in recent years. Since September 2000, Bass Strait gas has
flowed into New South Wales via the Eastern Gas Pipeline, which now supplies 20
per cent of that State's gas requirements.

In addition, BHP Billiton Petroleum signed an agreement in April 2001 to supply
natural gas from the Longford processing plant to Tasmania, supporting the
construction of an undersea pipeline.

BHP Billiton holds a 90 per cent interest in the Minerva field and will be the
project operator. The remaining 10 per cent interest is held by Santos (BOL) Pty
Ltd.



                                                          ****

Further information can be found on our Internet site
: http://www.bhpbilliton.com




Australia                                                  United Kingdom

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