BHP Billiton Ltd. (BHP.AU) said Monday that production has commenced ahead of schedule at the Pyrenees oil and gas project offshore Western Australia state.

The project, operated and 71.4%-owned by BHP and 28.6%-owned by Apache Corp. (APA), involves 13 subsea wells, to be drilled and brought on in phases, with about half the field ramping up from first oil and the rest over the next six months, BHP said.

The project involves a floating production storage and offloading facility with capacity of about 96,000 barrels of oil, and gas reinjection capacity of 60 million cubic feet of gas per day.

First production was scheduled for the first half of 2010.

-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; ross.kelly@dowjones.com
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