bhp jumps ahead of mimi for tap oil gas

By AAP | 02.06.2011 02:33 PM

The world's biggest resources company, BHP Billiton Ltd, has exercised its right to buy a gas exploration permit offshore Western Australia from Tap Oil Ltd, ahead of a Japanese consortium.

Tap Oil had agreed to sell the 25 per cent interest in WA-351-P in the Carnarvon Basin to Japan Australia LNG Pty Ltd (MIMI), owned by Japanese trading giants Mitsubishi Corporation and Mitsui & Co, for $US30.2 million ($A28.5 million).

MIMI had also agreed to pay Tap Oil's 20 per cent share of the next exploration well in the permit, up to $US10 million.

BHP Billiton, which already held 55 per cent of the permit, would exercise its right of pre-emption to buy the 25 per cent interest on the same terms and conditions as agreed with MIMI, Tap Oil said in a statement on Thursday.

Tap Oil will keep 20 per cent of the permit near the North West Shelf LNG venture and the Gorgon venture.