Under the agreement, Woodside has taken a 50% interest in 47 offshore exploration blocks operated by Pioneer, an exploration and production company with substantial holdings and multiple discoveries in the Gulf of Mexico.
The agreement covers eight prospects and 19 leads and includes five wells in 2003 and three in 2004. Most of the wells will target gas plays below 4500 metres (15,000 feet).
Woodside said the eight wells to be drilled by the parties in 2003 and 2004 are on prospects generated and leased by Pioneer since 1997. In addition, the companies will evaluate potential inclusion in the drilling program for shallower gas prospects on other blocks covered by the leases.
"The Gulf of Mexico is one of Woodside's four focus areas in our search for international exploration and production opportunities to complement our Australian interests," said Woodside's director of new ventures, Dr Agu Kantsler.
"Through this transaction, we continue our staged approach to building a balanced portfolio of shallow and deepwater opportunities in the Gulf of Mexico to manage risk and reward."
Pioneer is a large US independent exploration and production company with a market capitalisation of about US$3 billion. The company had a drilling success rate in 2001 of 85%.
It has total proved reserves equivalent to 4.1 trillion cubic feet of natural gas or 671 million barrels of oil. Pioneer operates in the US, Canada, Argentina, South Africa, Gabon and Tunisia.
