BHP, Hess and Repsol Buy Oil Stake in Gulf of Mexico

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BHP Billiton JV Buys Gulf of Mexico Development [Reuters]

Summary: Global miner BHP Billiton Limited announced today it has acquired an oil and gas development in the Gulf of Mexico from Anadarko Petroleum Corp. for $1.35b in a joint venture with U.S. Hess Corp. and Spanish Repsol YPF SA. Discovered in 2005 and known as Genghis Khan, the development already houses two wells, and could take on another five; it's estimated to have output capacity of anywhere from 65 to 170m barrels of crude oil, first expected in 2007. BHP owns 44% of the joint venture; Hess and Repsol YPF each hold 28%. Separately, BHP shares were down 3.9% in Australia this morning on a 5.5% in copper prices. Nickel was down 3% and zinc dropped 4.8%. BHP is the world's biggest miner by market cap and output.
Related links: Media coverage: Asian Stocks Drop Led by BHP on Metals [Bloomberg]. Commentary: Metal Miners Rattled by Fears of a Global Economic Slowdown • A Few Miner Adjustments: BHP Billiton & Phelps Dodge • Is it Too Late to Buy Base Metal Miners Rio Tinto and BHP Billiton? • Cramer's Take on BHP. Earnings conference call transcripts: Hess Q3 2006
Potentially impacted stocks and ETFs: BHP Billiton Limited (BHP), Hess Corp. (HES), Repsol YPF SA (REP), Anadarko Petroleum Corp. (APC) • ETFs: United States Oil Fund ETF (USO), Oil Service HOLDRs ETF (OIH). BLDRS Asia 50 ADR Index (ADRA) has a 6% BHP holding. PowerShares Dyn Energy Exploration (PXE) and Vanguard Mid-Cap ETF (VO) have HES as a top-10 holding. Europe 2001 HOLDRs (EKH) has a 5% REP holding.

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