BHP Billiton confirms Eagle Ford condensate exports
By STEVEN MCGINN
News Editor
HOUSTON -- BHP Billiton will export processed condensate produced from the Eagle Ford shale in South Texas, and will do so without an explicit approval from US regulators.
In an emailed statement, the Melbourne, Australia-based company said that it plans to export processed condensate – not crude oil – that has been fractionated in distillation towers at its Eagle Ford operations in South Texas.
“The processed condensate that BHP Billiton plans to export is not crude oil under [Bureau of Industrial Security] regulations,” the company said.
Barring a few exceptions, crude oil exports from the US are banned. Earlier this year, Pioneer Natural Resources and Enterprise sold a cargo of US-produced condensate to Korean buyers. That move confirmed to the commercial US oil market that processed condensate does not have to abide by the same restrictions as crude oil, thus making it an exportable product.
Domestically-produced condensate had been selling at discounts to benchmarks, so US marketers have been looking abroad to find a home for those barrels.
“After taking the necessary time to thoroughly examine the issues involved, we concluded that processed condensate is eligible for export,” the company said. “BHP Billiton has worked through a robust due diligence, secured a dedicated supply chain, and has taken steps to ensure the quality of our product for export.”
In 2011, the BHP Billiton acquired PetroHawk for $15 billion. PetroHawk held approximately 1,000,000 acres in the US, including about 333,000 acres in key areas of the liquids-rich Eagle Ford play.
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