BHP puts faith in Oz oil and gas

Resources giant BHP Billiton says it has "outstanding" opportunities for growth in Australia's oil and gas sector and is assessing five major petroleum projects.

It forecasts 10% annual compound growth in oil and gas output until 2011 as new fields in the Gulf of Mexico and Australia ramp up output.

The company owns a sixth of the North West Shelf venture, whose LNG production capacity grew by 37% this year. That venture is jointly owned by Woodside Petroleum, BP, Royal Dutch Shell, Chevron and a Mitusbishi-Mitsui joint venture. Woodside itself is 34%-owned by Shell.

BHP petroleum boss Phil Byrne said LNG demand growth in Asia is likely to remain strong, though near-term volatility is likely.

Potential new ventures include developing the Macedon gas field for supply to the Western Australian market and the Thebe, Scarborough and Browse fields.

BHP is discussing development of the eight trillion-cubic-feet Scarborough field with partner Exxon Mobil.